RIM Earnings Soar 120%, Topping Expectations

Research In Motion reported a fourth-quarter profit that more than doubled and beat expectations, and the company delivered a strong outlook.

RIM, the maker of the BlackBerry, said it earned $412.5 million, or 72 cents a share, in the three months ended March 1.

Susan Walsh / AP A Blackberry device. (AP Photo/Susan Walsh)

That was up from a profit of $187.4 million, or 33 cents a share, in the same period a year earlier.

That beat a forecast made by the company in February, when it told the market to expect earnings of 66 to 70 cents a share.

Shares of RIM jumped about 4 percent in extended trade after closing 1.44 percent lower at $115.79 during regular market hours.

For the upcoming first quarter, the company said it expects revenue of $2.23 billion to $2.3 billion and a profit of 82 cents to 86 cents a share — better than the 77 cents expected by analysts, according to Reuters Estimates.

Canaccord Adams analyst Peter Misek said the "monster" results are even stronger because of RIM's first-quarter forecasts in the face of a faltering U.S. economy.

"What's impressive is that, given the macro environment that they know about, they guided this strong," he said.

Some analysts have raised concerns that job losses in corporate America would lead to slower sales of the BlackBerry, a staple device of most executives.

As well, observers have warned that companies and big government departments could delay upgrading to newer versions of RIM's smartphone lineup.

"To achieve these numbers in what looks like a U.S. recession is a big positive surprise for investors, many of whom had worried that a slowdown would hurt RIM," said Duncan Stewart, president of Duncan Stewart Asset Management in Toronto.

CONTINUED: Balsillie: No Signs of a Slowdown

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