Late Thursday and into Friday, Stockhouse members continued to provide their thoughts on Research In Motion (TSX: T.RIM, Stock Forum), which released its third quarter results after Thursday’s market close.
As reported Thursday, RIM posted third quarter earnings of $396.3 million, or 69 cents a share, compared with earnings of $370.5 million, or 65 cents a share, for the same quarter last year. Excluding certain charges, RIM said it would have earned $577.3 million, or 83 cents a share, for the period. The company’s revenue grew 66% to $2.78 billion.
For the current quarter, RIM said it expects to earn between 83 cents to 91 cents a share, with revenue expected to be in the range of $3.3 billion and $3.5 billion. Analysts were expecting earnings of 86 cents a share on revenue of $3 billion.
xandre commented Thursday after the results were released, saying:
the nice pop up after hours will probably burst tomorrow.. The numbers are surprisingly good. The guidance is even better.. But this smells very very fishy... How come when they cut down prices soo much, when their customers are cutting stuff by the thousands and cutting costs as well, they are still expecting better and bigger earnings.. Something does not add up here.. Huge discounts they are giving mainly startedin december and they must be expecting that these wil be temporary...
fdfd55 said on Friday morning: “what brought this stock down to the $40 level was because they announced that their margins would be only 47% compared with 50%.This brought all downgrades. Now they are saying that for Q4 and 2009, their margins will be 40%-41%. This is a big problem. They need big revenue to counter attack this[sic].”
