Will Research In Motion Beat These Analyst Estimates?

Research In Motion (Nasdaq: RIMM  ) is expected to report Q2 earnings on Sep. 27. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Research In Motion's revenues will contract -40.1% and EPS will shrink to a loss.

The average estimate for revenue is $2.50 billion. On the bottom line, the average EPS estimate is -$0.47.

Revenue details
Last quarter, Research In Motion logged revenue of $2.81 billion. GAAP reported sales were 43% lower than the prior-year quarter's $4.91 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$0.37. GAAP EPS were -$0.99 for Q1 against $1.33 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 28.0%, 1,590 basis points worse than the prior-year quarter. Operating margin was -10.9%, 2,920 basis points worse than the prior-year quarter. Net margin was -18.4%, 3,260 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $10.19 billion. The average EPS estimate is -$1.52.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 4,423 members out of 5,796 rating the stock outperform, and 1,373 members rating it underperform. Among 1,065 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 742 give Research In Motion a green thumbs-up, and 323 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Research In Motion is underperform, with an average price target of $12.52.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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  • Report this Comment On September 24, 2012, at 1:49 PM, tonyrenier wrote:

    As a BB user and minor shareholder, I think any positive (even mildly negative) expectation is ridiculous. BB 7 is getting old, they are not selling in North America and Europe.

    Everyone's crossing their fingers for BB 10, I certainly don't expect any good news for this or next quarter.

    I went into this for the long haul, I think they'll pull it out, or I wouldn't have the stock. Everyone needs to hold on and wait, not only for BB 10 but for (and this is the big one) improved marketing by RIM.

  • Report this Comment On September 24, 2012, at 9:05 PM, rubo713 wrote:

    Agreed, the report doesn't matter at this point, I believe they are handling the restructure and the timing of everything perfectly, even with the delays. As much as people wish BB would crawl into a deep dark cave and go away, which is hilarious, I never hear any BB user wishing bad upon Apple or Android, we just laugh as the other companies are at each others throats, with the lawsuits and whatnot, just wishing they had the patent portfolio RIMM has. As a BB Developer, 10 is going to set the standard and make the modern day smartphone, look a little dumb, prepare to be excited ;-)

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