If you are an investor of Research In Motion Limited (USA)(NASDAQ:RIMM), then you must be frustrated as the stock has underperformed widely over the past few week in the wake of intense competition from its closest rival Apple Inc.(NASDAQ:AAPL), which has amazing unique iPhone and iPad, which easily attracted tech lovers over RIMM’s traditional Blackberry.
Over the past four consecutive quarters, the company has been reporting lower than estimated revenue on back of lower product sales. Now investors would focus on the company’s fourth quarter results, which were just released. Earning fell 80% while sales plummeted 25% to $ 4.19B.
If we analyze the company’s earnings from big brokers’ point of views, then the company would continue to report lower than estimated earnings.
Analyst at Barclays Capital, which has an Equal Weight rating on the stock, believes that the company sold toward the low end of its forecast for 11 million to 12 million units for the quarter. The firm is expecting earnings of 75 cents a share on revenue of $4.5 billion, which is shy of company’s last projection of 80 cents to 95 cents a share on revenue of $4.6 billion and $4.9 billion.
On the other hand, analyst at Citigroup believes that the company sold 11-12 million unit range, down 15-22% sequentially. The firm is projecting $4.56 billion in revenue on sales of 11.4 million BlackBerry units and 241,000 PlayBook tablet computers, and 83 cents a share in profit, which is again below company’s projections. Interestingly, the firm expects the company to warned about the fiscal Q4 that ended last month, given “the outlook provided last quarter was substantially below expectations.” The firm has a sell rating on the stock with a price target of $12.
During the latest quarter, RIMM announced major board changes, promoting a new CEO, with the two former CEOs and board chairmen resigning their positions and taking up board director positions while still maintaining the two largest ownership stakes. Today announcement was followed by board member Jim Balsillie’s resignation.
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