When J.P. Morgan cut their earning estimates for RIM last week, it was before the Waterloo company responded in kind, cutting their own Q3 2009 estimates last Wednesday. J.P. Morgan has updated their estimates once again to reflect RIM’s new numbers, expecting the company to report earnings per share of $0.81 on sales of $2.75-billion, unit sales of roughly 6.8 million in the quarter, with average selling prices of $332 and net subscriber additions of approximately 2.6 million.
J.P. Morgan has again trimmed its estimates on Research In Motion Ltd. (RIMM) in response to the BlackBerry-maker’s third quarter profit warning and signs of a broadening global slowdown in mobile handset sales. However, analyst Paul Coster is maintaining an “overweight” rating and told clients that RIM deserves to trade at a premium multiple as a result of its leadership position in an open-ended growth market.
J.P. Morgan’s estimates for fiscal 2009 through 2011 were also cut, with year-over-year unit growth in 2010 reduced from 42.7% to 32.5%. This implies unit shipments of about 37.7 million next year. BlackBerry Cool will have full coverage of RIM’s Q3 2009 earnings report on December 18th.
|via Seeking Alpha|