GO
Loading...

Reading the Future in Palm's Latest Earnings

Palm topped Wall Street's third-quarter revenue expectations, and boasted 738,000 unit shipments, well above analysts' predictions of 700,000.

But on Thursday, the maker of the Treo smart phone said earnings fell to $11.8 million, down from $29.9 million in the year-ago period -- and cut its outlook for the fourth quarter. David Garrity, director of research at Dinosaur Securities, joined "Closing Bell" to discuss what's wrong and right about the firm.

Garrity told CNBC's Melissa Francis that Palm's rising sales and dimmed expectations "confirms what Motorola said" -- that "price weakness is coming home to roost." The researcher noted that Motorola on Wednesday lowered its outlook -- and simultaneously dashed hopes that it was a "lead contender" to acquire Palm.

But he doesn't rule out the possibility of M&A altogether -- and says that suitors may include such heavy hitters as Microsoft and Google.

Symbol
Price
 
Change
%Change
VOW3
---
GOOGL
---
MSFT
---

Garrity cites Microsoft's "big moves" into hardware, such as handheld digital music player Zune (would-be rival to Apple's iPod); and mentions industry scuttlebutt that Google plans to launch a "G-phone".

Contact Closing Bell

  • Showtimes

    United States
    Monday - Friday 3:00P ET
    Europe
    Monday - Saturday 21:00 CET
    Asia
    Tuesday - Saturday 03:00 SIN/HK
    Australia
    Tuesday - Saturday 05:00 SYD
    New Zealand
    Tuesday - Saturday 07:00 NZ
  • With almost 30 years experience in business television, Bill Griffeth is co-anchor of the 3 p.m. ET hour of CNBC's "Closing Bell."

  • Kelly Evans

    Kelly Evans is co-anchor of CNBC's "Closing Bell."