Research In Motion Still has a Pulse!
After the bell today Research in Motion (NASDAQ: RIMM) reported earnings per share of $1.46 for the second quarter, comfortably ahead of the $1.35 consensus estimate. The company earned $4.62 billion in revenues for the quarter, ahead of estimates of $4.5 billion. For the third quarter, RIMM issued guidance of $1.62-1.70 in EPS, ahead of the $1.39 estimate, on revenues in the $5.3-5.55 billion range also above the $4.8 billion consensus estimate.
The other day, David Gibbs here asked whether Research in Motion was “Primed for a Comeback?” If today’s earnings report is any indication, the answer is a resounding yes. Third quarter guidance is particularly impressively optimistic considering the lashing the company has taken in the last quarter from its competition and the media. Some have questioned whether the Blackberry maker was headed the way of Palm, who not too long ago enjoyed a major technological advantage in the PDA field before capitulating as an independent company in a giveaway sale to Hewlett-Packard (NYSE: HPQ).
The Blackberry’s competition has been fierce in the smart-phone sector from the two headed monster that is the Apple iPhone and the Google Android. Software innovation has been the driving force behind sales of smart phone devices, and the Blackberry is perceived as a laggard in drawing the ire of consumers. Regardless of the threat on the consumer front, RIMM remains a force in the enterprise smart phone world. Many enjoy the company’s exclusive Blackberry Messenging (BBM) service and the industry leading security offered by Blackberry devices.
The stock has taken a beating; however, in this market sentiment seems to shift on a dime. Today’s earnings report should bring about some relief for the company. Already the stock is up substantially higher, as shares of RIMM are trading up by $4.43, or 9.7%.