On Dec. 20, mobile gadget designer Research In Motion
- The revenue growth continues unabated, this time 22% over the take from the previous quarter and twice the sales of the year-ago period.
- Net and operating margins came up aces, at levels not seen in the past two years.
- Just to pick a nit, this was the fifth quarter in a row of gently declining gross margins. That's an industry-wide malaise, though -- both Motorola and Nokia have experienced a similar swoon over the past year or so, as average selling prices everywhere are heading south.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q3 2008 |
Q3 2007 |
Change |
|
|---|---|---|---|
|
Sales |
$1,673 |
$835 |
100.3% |
|
Net Profit |
$370 |
$175 |
111.5% |
|
EPS |
$0.65 |
$0.31 |
109.7% |
|
Diluted Shares |
573.7 |
569.5 |
0.7% |
Get back to basics with the income statement.
Margin Checkup
|
Q3 2008 |
Q3 2007 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
50.7% |
54.2% |
(3.5) |
|
Operating Margin |
29.3% |
26.9% |
2.4 |
|
Net Margin |
22.2% |
21.0% |
1.2 |
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q3 2008 |
Q3 2007 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,597 |
$893 |
78.8% |
|
Accounts Rec. |
$1,037 |
$449 |
131.2% |
|
Inventory |
$340 |
$216 |
57.4% |
|
Liabilities |
Q3 2008 |
Q3 2007 |
Change |
|---|---|---|---|
|
Accounts Payable |
$230 |
$111 |
107.3% |
|
Long-Term Debt |
$7.2 |
$6.6 |
9.4% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q3 2008 |
Q3 2007 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$521 |
$215 |
141.8% |
|
Capital Expenditures |
$97 |
$64 |
50.5% |
|
Free Cash Flow |
$424 |
$151 |
180.5% |
|
$322 |
$146 |
120.9% |
Free cash flow is a Fool's best friend.
Competitive Context
|
Market Cap |
Trailing P/E Ratio |
CAPS Rating |
|
|---|---|---|---|
|
Apple |
$169,130 |
49.1 |
|
|
Nokia |
$148,330 |
16.1 |
|
|
Research In Motion |
$66,300 |
77.4 |
|
|
Motorola |
$37,220 |
81.0 |
|
|
Palm |
$677 |
39.9 |
Using the latest reported numbers from Capital IQ.
Keep your partners close and the competition in your vest pocket.
Related Foolishness:
- Foolish Forecast: Pop the Research In Motion Bubble
- Dueling Fools: Research In Motion
- World's Scariest Stock: Research In Motion
- Foolish Fundamentals: Valuation
As Foolanthropy enters its second decade, join us in working to bring financial education to the world's youth. Learn more about Foolanthropy's new direction.
