Bloomberg article RIM may miss earnings
Research In Motion May Cut Forecasts, Analysts Say (Update1)
By Sean B. Pasternak
Waterloo, Ontario, April 5 (Bloomberg) -- Research In Motion Ltd., maker of the BlackBerry e-mail pager popular with lawyers and brokers, probably will lower sales forecasts, analysts said.
A revised outlook could come as soon as next week, when the company reports financial results for the year that ended in February, said three analysts polled by Bloomberg News. Research In Motion is expected to have sales of $359.5 million in the current fiscal year, according to the mean estimate of analysts surveyed by IBES International Inc.
``It's too soon to say by how much, but it would be sensible to assume they will nudge down (guidance) somewhat,'' said Paul Coster, an analyst at JP Morgan Securities in New York. He rates the stock a ``long-term buy.''
Research In Motion officials declined to comment.
The analysts said Research In Motion customers are spending less on pagers and other communications devices as the economy slows. Waterloo, Ontario-based Research In Motion's BlackBerry lets people send and receive e-mail on a small, portable device.
Corporations that include Citigroup Inc. unit Salomon Smith Barney Inc., Credit Suisse First Boston Inc. and Merrill Lynch & Co. use the BlackBerry as an alternative to a cellular phone.
``Anecdotal evidence continues to mount that many of RIM's major enterprise customers -- especially financial services companies and technology companies -- have halted new orders of RIM devices,'' Merrill Lynch analyst Virginia Genereux wrote in a report.
The company also faces a challenge from Palm Inc., the No. 1 maker of handheld organizers. Palm Chief Executive Carl Yankowski has said the Santa Clara, California-based company will introduce a device to compete with BlackBerry.
Research In Motion shares rose C$5.78 ($3.67), or 20 percent, to C$35.28 in Toronto. The stock has fallen 71 percent this year.
......As if this is any surprise |
