Research In Motion
The 10-second takeaway
For the quarter ended Sep. 1 (Q2), Research In Motion beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
Research In Motion notched revenue of $2.87 billion. The 37 analysts polled by S&P Capital IQ expected sales of $2.51 billion on the same basis. GAAP reported sales were 31% lower than the prior-year quarter's $4.17 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.45. The 38 earnings estimates compiled by S&P Capital IQ predicted -$0.46 per share. GAAP EPS were -$0.45 for Q2 compared to $0.63 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.4%, 1,030 basis points worse than the prior-year quarter. Operating margin was -7.9%, 1,770 basis points worse than the prior-year quarter. Net margin was -8.2%, 1,610 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.66 billion. On the bottom line, the average EPS estimate is -$0.34.
Next year's average estimate for revenue is $11.06 billion. The average EPS estimate is -$1.28.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 4,426 members out of 5,815 rating the stock outperform, and 1,389 members rating it underperform. Among 1,072 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 740 give Research In Motion a green thumbs-up, and 332 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Research In Motion is hold, with an average price target of $7.90.
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