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.