RIM Meets Profit Forecasts And Raises Outlook
Research In Motion, maker of Blackberry wireless devices, reported second quarter earnings in line with estimates and raised guidance for the third quarter.
The company posted profit of 50 cents a share on revenue of $1.37 billion, compared with analysts' forecasts of 50 cents in earnings on revenue of $1.36 billion, according to Thomson Financial.
Revenue rose 108% from the year-ago quarter, the company said, and it added 1.45 million subscribers in the quarter -- better than what it predicted in June.
"I like it, the results were good and guidance was quite strong," said Nirav Parikh, an analyst at TCW.
Looking ahead, the Canadian handheld device maker said it expects third-quarter earnings of 59 to 63 cents a share and revenue in a range of $1.6 to $1.67 billion. This tracks higher than the current Wall Street average estimates of 55 cents a share and $1.52 billion, respectively.
"RIM's second quarter results were exceptionally strong on all metrics including revenue, subscriber account additions and net income," co-chief executive Jim Balsillie said in a statement. "This growth is fueled by the depth of the Blackberry product portfolio and the continued diversification of our business across market segments and geographies."
The company said it expects to add about 1.65 million new subscribers in the third quarter.
Despite the upbeat guidance, RIM shares declined about 1% in after-hours trading after initially falling as much as 6%.