Research in Motion Soars on Subscriber Adds (RIMM)
Research in Motion NASDAQ: RIMM) has raised its subscriber forecasts this morning. The maker of Blackberry now expects its net subscriber additions for its fourth quarter to be approximately 15% to 20% higher than the 1.82 million net subscriber account additions forecast by R-I-M back on December 20, 2007.
This will make the total BlackBerry subscriber account base roughly 14 million at the end of the quarter. The company also said it continues to expect Q4 revenue and earnings per share to be within the range previously given in December: Revenue is expected to be $1.80 to $1.87 Billion and its sees $0.66 to $0.70 per share diluted; First Call has estimates at $1.85 Billion revenues and $0.69 EPS.
If you want to know how the economy is affecting them, we need to look no further than its CEO commentary. Jim Balsillie, Co-CEO: “The seasonal slowdown in net subscriber account additions that we expected in the new year did not occur and our focused execution with partners has continued to produce strong results within both enterprise and consumer segments.”
Shares of RIMM are spiking higher in very early pre-market trading with a near-7% gain to $104.55. If these levels hold, this will mark the highest share prices since the first days of 2008.
Jon C. Ogg
February 21, 2008