U.S. News

RIM Profit Beats Expectations, While Palm Posts Lower Results


Blackberry device maker Research In Motion posted earnings of $1.17 a share, up from 67 cents a share a year earlier, beating analyst estimates of $1.06 a share.


The company also declared a 3 for 1 stock split which will be implemented by way of a stock dividend. Shareholders will receive two additional common shares of the company for each common share held.

Research in Motion , whose shares rose sharply in after-hours trading, also raised guidance for the current quarter.

Palm, however, posted lower quarterly profit and revenue even as it reported record sales of its Treo smartphones.

Palm said its profit fell to $15.4 million, or 15 cents per share for its fiscal fourth quarter, from $27.2 million, or 25 cents a share in the year-ago quarter. Revenue fell to $401.3 million from $403.1 million.

Analysts on average had expected net earnings of 15 cents per share on revenue of $406.58 million. The company also warned that earnings excluding items this quarter could be as low as 7 cents a share this quarter, versus estimates of 14 cents.

Palm, which announced earlier this month it would sell a 25 percent stake to private equity firm Elevation Partners for $325 million, announced its results the day before the widely anticipated launch of Apple 's iPhone.