BlackBerry, CrackBerry, EarningsBerry… When Good Isn’t Good Enough (RIMM)

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By Douglas A. McIntyre Updated Published

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Research-in-Motion Ltd. (NASDAQ: RIMM) report its highly awaited earnings today.  The BlackBerry maker posted $0.98 EPS and $3.42 billion in revenues. The Thomson Reuters estimate was $0.94 EPS on $3.42 billion in revenues and the company previously gave guidance of $0.88 to $0.97 EPS and revenue of $3.3 billion to $3.5 billion.  Today was not about earnings.  It was about how much it would outperform against the expectations.

We had an unofficial whisper number of $1.00 and over $3.5 billion, but we want to caution that whisper numbers are not always reflective of a final forecast

The company also guided the coming quarter to $0.94 to $1.03 EPS and $3.45 to $3.7 billion, while estimates are $0.97 EPS and $3.59 billion.

Total new subscriber accounts were in-line at 3.8 million. At the end of the prior quarter, its BlackBerry subscriber account base was approximately 25 million.  The company’s guidance for this last quarter report was 3.7 to 3.9 million net account subscriber additions with a margin forecast of about 43% to 44%.

The company said 7.8 million units were shipped, below the 8 million we were looking for. RIM is also looking for another 3.8 million to 4.1 million in net subscriber additions.

This stock had doubled recently from lows, but that was before the selling this week.  We had an unofficial closing bell price of -0.85% at $76.55.  Shares are trading down just under $74.00 in after-hours trading and the 52-week range is $35.05 to $148.13.

Jon C. Ogg

Contact [email protected] for any questions or corrections.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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