Research In Motion
The 10-second takeaway
For the quarter ended Dec. 1 (Q3), Research In Motion beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped significantly.
Gross margins increased, operating margins contracted, net margins contracted.
Research In Motion recorded revenue of $2.73 billion. The 35 analysts polled by S&P Capital IQ anticipated sales of $2.67 billion on the same basis. GAAP reported sales were 47% lower than the prior-year quarter's $5.17 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 -$0.22. The 36 earnings estimates compiled by S&P Capital IQ predicted -$0.35 per share. GAAP EPS of $0.02 for Q3 were 96% lower than the prior-year quarter's $0.51 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.4%, 310 basis points better than the prior-year quarter. Operating margin was -8.4%, 1,490 basis points worse than the prior-year quarter. Net margin was 0.3%, 480 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.91 billion. On the bottom line, the average EPS estimate is -$0.27.
Next year's average estimate for revenue is $11.20 billion. The average EPS estimate is -$1.37.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 4,408 members out of 5,811 rating the stock outperform, and 1,403 members rating it underperform. Among 1,069 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 728 give Research In Motion a green thumbs-up, and 341 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 $9.24.
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