JP Morgan: RIMM $0.63 EPS and 2.5 Million Subscribers

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JP Morgan expects RIMM to report 4Q05 EPS of $0.63 on sales of $402.1 million tomorrow, slightly below consensus estimate of $0.65 EPS on sales of $409.7 million, and near the mid-point of guidance ($0.60-$0.67 EPS/$390-410 mln sales). Firm expects the subscriber count to reach 2.48 million and handheld unit shipments to reach 790K. They believe the NTP settlement could cause a favorable downward revision to the FY06 tax rate forecast; a potential positive. They also expect that the conference call is likely to dwell on the competitive landscape. JP Morgan thinks RIM is inevitably being challenged by new entrants (e.g. Good, Intellisync, Visto, Seven) and private-label carrier solutions, and that there are emerging threats from Microsoft and Nokia.

Thanks to Brian for the tip …