Headline Alert
Earnings Update: RIMM Soars in After Hours
Lots of analysts like to complain about Research in Motion (RIMM); suggesting that Apple (AAPL) and Google (GOOG) are going to replace the BlackBerry as “the” smartphone to own. However, today’s earnings report suggests otherwise.
Research In Motion Limited reported that its earnings grew by 59 percent for the fiscal third quarter as sales of the company's signature Blackberry smartphones jumped.
Shares for RIM are up more than 11 percent in the aftermarket hours.
The company reported third-quarter earnings of $1.10 per share, compared to the 69 cents per share earned in the year-ago period, and 6 cents better than the market estimate of $1.04. Revenue
was $3.9 billion, ahead of the analyst consensus of $3.78.
Net profit for RIM increased to $623 million, well ahead of the $396 million in the same quarter last year.
RIM added 4.4 million subscribers in the third quarter, for a total of 36 million users. The company's smartphones are in direct competition with Apple's iPhone and Motorola's (MOT) new
Droid.
"We are pleased to report record shipments of more than 10 million BlackBerry smartphones during the third quarter with higher than expected revenue, earnings and subscriber growth," said Jim
Balsillie, Co-CEO at Research In Motion.
For the fourth quarter, RIM foresees earnings in the range of $1.23 to $1.31 per share, on revenue of $4.2 billion to $4.4 billion. Analyst had forecasted earnings of $1.12 and revenue of $4.1
billion.
Shares of RIMM are up 12.07% to $71.12 in the post-market hours.
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