Updated with Friday's premarket stock prices.
WATERLOO, Ont. (
Research In Motion
fell in premarket trading Friday after tumbling after hours Thursday after it missed on sales with its latest results and offered a dimmer-than-expected outlook.
The BlackBerry maker posted adjusted earnings, excluding one-time items, of $1.03 a share for its fiscal second quarter, up from 86 cents a share in the same period a year earlier, and slightly better than the $1 per share profit analysts were looking for.
But sales for the three months ended August 29 came in at $3.53 billion, up from the $2.58 billion level last year, yet below the $3.62 billion in sales analysts expected.
RIM also signed on 3.8 million net new BlackBerry subscribers in the quarter, less than the 4 million Wall Street was looking for. And while gross margins of 44.1% were better than the 43.5% expected, total phone shipments were only 8.3 million, just shy of the 8.4 million anticipated by analysts.
"We are pleased to report a strong second quarter with excellent financial performance, successful product launches and accelerating growth in international markets and new market segments," RIM Co-CEO Jim Balsillie said in a press release.
Looking ahead, RIM says it expects an adjusted profit for the fiscal third quarter of $1 to $1.08 per share, a range that surrounds the current $1.05 per share consensus estimate. RIM put its sales forecast for the quarter ending in November between $3.6 billion and $3.85 billion. The midpoint of that range is $3.72 billion, well below the $3.9 billion target analysts had for RIM.
RIM shares closed Thursday at $83.06, but fell around $73 in brisk after-hours trading. The stock has fallen further in premarket trading Friday to $72.60.
"People got far too giddy about this industry over the past three months," says MKM Partners analyst Tero Kuittinen in the wake of the report. "It's time to wake up."
Written by Scott Moritz in New York.