Bracing For R-I-M Earnings (RIMM)

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Research in Motion Limited (NASDAQ: RIMM) is on deck with earnings today.  It goes without saying, but even after an earnings warning very few are excited about the prospects of any great outcome.  To prove a point, R-I-M is down 0.6% at $14.99 going into earnings and shares hit a new 52-week and multi-year low of $14.80 today.  That is down from a high of over $70.00.

Thomson Reuters has a listed consensus estimate of $1.19 EPS and $5.27 billion, and the consensus estimate for the coming (or current) quarter are $1.18 EPS on $5.12 billion in sales.

It seems that the bar is still too high for the coming quarter.  If not, well then R-I-M is trading at less than 4-times expected fiscal February 2012 earnings expectations.  We are also not relying upon the Thomson Reuters consensus price target of $22.16 either.

What is interesting is that the December calls and puts options expire in just over 24 hours and there have so far been more than 50,000 Calls versus about 33,000 Puts.

No reason at all to bother with a chart analysis… We also would not bother looking at any cause and effect on R-I-M peers.  The real question: WILL R-I-M FINALLY FIRE ITS TOP BRASS?

JON C. OGG