Strong Guidance Powers Research In Motion
Research In Motion (RIM) jumped as much as 6% in after hours trading, after the tech company reported strong subscriber growth in the third quarter and offered revenue guidance well above analysts' expectations.
Revenue for the third quarter rose 27% to $835.1 million, slightly above estimates of $816 million. Earnings came in at 93 cents a share, a penny below Thomson Financial's consensus estimate, versus 61 cents a share in the year-ago period.
"These are awesome numbers," said Peter Misek, Senior Technology Analyst at Canaccord Adams on CNBC's "Closing Bell." Misek called RIM's revenue guidance "blockbuster."
RIM says it expects fourth-quarter revenue of $900 million to $940 million. Ahead of the earnings report, analysts were forecasting just $861 million in revenue.
RIM also said it expects 950,000 to 975,000 subscriber account additions in the fourth quarter.