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Tuesday
22 May 2012

Research In Motion lower earnings forecast, Blackberry Storm the king of returns?

Research in Motion lowered its fiscal fourth quarter earnings projections today, sending its stock price into a tailspin.  In November, the Blackberry maker projected earnings between $0.83 and $0.91 per share and margins of 40 to 41 percent.  The company now expects both to be closer to the lower end when it announces fourth quarter earnings April 2.

Amazingly, the lowered expectations accompanies a 20 percent boost in subscriber growth.  Put together, the numbers could indicate that consumers are returning Blackberry’s touchscreen Storm in exchange for its traditional Curve models–which are also cheaper.

via wsj

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