RIM Misses Q1 Revenue, EPS; Guidance Mixed; Look Out Below
Posted Jun 25, 2008 04:33pm EDT by Dan Frommer in Investing, Telecom, Products and Trends
Related: rimm, aapl
From Silicon Alley Insider, June 25, 2008:
The Street thought RIM's Q1 was an easy layup, but the BlackBerry maker missed both revenue and EPS estimates, and issued mixed guidance for Q2. Specifically, Q2 EPS guidance is below consensus -- and well below some bullish estimates -- and net subscriber additions are below some estimates, too. Shares are down 7.3% after-hours to $132.00.
What went wrong? Net subscriber additions -- 2.3 million -- were in line with estimates we've seen. Overall smartphone sales -- 5.4 million -- were a bit light.
No color from management in the release; we'll look for comments on the earnings call about the enterprise IT environment, any information about a potential delay in the BlackBerry Bold launch at AT&T, and any commentary about competing with Apple's (AAPL) 3G iPhone, due out next month.
Release, updated financial model.
More to come, including live coverage of the earnings call at 5 p.m. ET; go here for the latest.
Key Q1 metrics:
Revenue: $2.24 billion, up 107% y/o/y but short of $2.27 billion consensus
EPS: $0.84, a penny short of $0.85 consensus
Net subscriber additions: 2.3 million, even with 2.3 million estimate (Lehman)
Phones shipped: 5.4 million, below 5.5 million estimate (Citi)
Q2 guidance:
Revenue: $2.55-2.65 billion, above $2.44 billion consensus, $2.5 billion (Citi)
EPS: $0.84-$0.89, below $0.90 consensus, $0.94 (Citi)
Net subscriber additions: 2.6 million, below 2.8 million estimate (Citi) |
