RIMM shares soars after announcing 70% increase in sales revenue
“RIMM blew past analyst expectations for the first-quarter and, more critically, told the Street that it would perform just as impressively in the second-quarter. The company, which makes the BlackBerry, said that, for the quarter ended June 2, it earned $223.2 million, or $1.17 per share, versus $128.8 million, or 67 cents per share, from a similar period last year. Adjusted net income, excluding a $5.3 million stock option expense, totaled $228.5 million, or $1.20 per share.
Revenues rose close to 80% to $1.08 billion. The company said 76% of first-quarter revenue came from device sales. BlackBerry subscriber accounts increased by about 1.2 million during the period, to a total of 9 million. The company said it shipped 2.4 million devices during the quarter, and also announced a 3-for-1 stock split.
Those numbers easily beat the Street. Analysts had estimated earnings of $1.06 per share on sales of $1.05 billion.
Just as impressively, RIMM predicts solid future financial performance. The company forecasts second-quarter earnings between $1.37 and $1.49 per share, or 45 to 49 cents per share on a post-split basis. The company is also looking for second-quarter sales that wll be between $1.30 billion and $1.37 billion. Analysts are predicting second-quarter earnings of $1.12 per share on sales of $1.11 billion.”
Courtey of Forbes.com
