Friday, December 16, 2011

RIM stock plummets after earnings report

RIM reported its 3rd quarter earnings after the closing bell on Thursday. Even though RIM only missed the earnings forecast by a small margin (actual $5.2B compared to forecast of $5.3B), the 4th quarter guidance was worse than expected.

Net Income dropped to $285M from $911M in the same quarter last year. As reported earlier RIM took a massive loss on Playbook sales writing off $485M due to lagging sales. RIM said it shipped only 150,000 Playbook Tablets in the 3rd quarter.

RIM projects revenue to be between $4.6 - $4.98 Billion in the 4th quarter. Streets expectations were around $5.12 Billion. Based on these forecast stock price for RIMM dropped 7% ($13.98) in after-hours trading.


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