Research In Motion Limited
The 10-second takeaway
For the quarter ended March 3 (Q4), Research In Motion missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Research In Motion logged revenue of $4.19 billion. The 37 analysts polled by S&P Capital IQ foresaw a top line of $4.51 billion on the same basis. GAAP reported sales were 25% lower than the prior-year quarter's $5.56 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.80. The 39 earnings estimates compiled by S&P Capital IQ anticipated $0.81 per share on the same basis. GAAP EPS were -$0.24 for Q4 against $1.79 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 33.4%, 1,070 basis points worse than the prior-year quarter. Operating margin was 5.1%, 1,550 basis points worse than the prior-year quarter. Net margin was -3.0%, 1,980 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.64 billion. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $15.57 billion. The average EPS estimate is $2.40.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 4,467 members out of 5,712 rating the stock outperform, and 1,249 members rating it underperform. Among 1,086 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 802 give Research In Motion Limited a green thumbs-up, and 284 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 $17.63.
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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. 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.