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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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.