SAN FRANCISCO -- It seems there's no stopping Research In Motion ( RIMM). While smartphone rivals Motorola ( MOT) and Palm ( PALM) have stumbled , the Canadian maker of the ubiquitous BlackBerry has surged ahead with a stream of new products and a foray into international markets such as China and India. Even Apple's ( AAPL) much-vaunted iPhone has been unable to dent RIM's standing as the undisputed smartphone leader for business users. As RIM readies to report its second-quarter results later Thursday, analysts expect the company to further consolidate its position by not just beating expectations on revenue and EPS, but also showing strong growth in its subscriber additions.
For the second quarter, analysts polled by Thomson Financial are expecting earnings of 49 cents a share on revenue of $1.36 billion. The company posted EPS of 25 cents on revenue of $658.5 million a year ago. RIM has forecast subscriber additions of 1.32 million to 1.37 million in the second quarter. Analysts also will be sifting through the company's earnings report for details on gross margins and average selling prices for clues that the company can successfully manage the move from a mostly business-user base to adding more consumer accounts into the mix. RIM currently gets about 75% of its revenue from business users. Estimating the impact of the company's quarter on the stock is a difficult call as most of the near-term gains are likely built into the current stock price, says Rob Sanderson, an analyst with American Technology Research, which doesn't own shares of RIM or have an investment banking relationship with the company.