RIM Surges on Higher-Than-Expected Earnings

The company managed to lose less than Wall Street expected

   

It’s never a good sign when a company beats expectations but still posts a loss.

Or when a company surges on such news … but is still in the red nearly 50% year-to-date.

But that’s exactly what’s happening to crumbling tech company Research in Motion (NASDAQ:RIMM).

In its earnings report yesterday, it announced that it only lost $235 million and brought in revenue of $2.9 billion. That made for a loss of 27 cents per share, while analysts had been bracing for a whopping 47 cents per share in the red.

Wall Street had also been expecting sales of only $2.47 billion. And so, shares of RIMM opened up 12%.

The company also surprised investors this week by announcing around 2 million new subscribers.

Still, the stock has been on a downward trend thanks to the Apple (NASDAQ:AAPL) iPhone 5 release, along with its sliding market share and phone sales.

In fact, despite the higher-than-expected ‘earnings,’ the company still saw a 30% drop in smartphones shipped from last quarter, and a 40% fall year-over-year.

The company is betting on the release of its Blackberry 10 — now slated for 2013 — to turn that trend around.

There is also chatter than Hewlett-Packard (NYSE:HPQ) could be eyeing the company for an acquisition.


Article printed from InvestorPlace Media, http://investorplace.com/2012/09/rim-surges-on-higher-than-expected-earnings/.

©2014 InvestorPlace Media, LLC

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