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J.P. Morgan cuts RIM’s Q3 financial estimates – again

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RIM logoWhen 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|

RIM’s stock has dropped 18% in past two days, what’s wrong?

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RIM stock crash

At BlackBerry Cool, we try to avoid posts of an alarmist nature, as they’re usually a pretty cheap way to attract attention (playing Chicken Little was never our style). That being said, it’s always worthwhile to pay attention to RIM’s financial outlook, especially in the face of the current economic crisis.

Since trading resumed after Thanksgiving weekend, RIM’s share price has dropped from a high of $44.22 on December 1st to it’s current trading value of $36.38, a difference of $7.84, or roughly 18%. This drop is mostly a reflection of analysts such as J.P. Morgan trimming their RIM ’09 and ’10 earnings estimates. Just yesterday, RIM themselves lowered their Q3 revenue expectations due to product launch delays and the economy in general. While most of us already know how David Pogue feels about the BlackBerry Storm (you should all read Al Sacco’s excellent retort to Pogue’s article, by the way), even the Wall Street Journal is now asking whether RIM’s issue is launch delays or the devices themselves.

So I feel as though diligent members of the BlackBerry Nation have to ask, is this a minor hiccup for RIM or the beginnings of a looming downward trend? To put a finer point on it, is the sky falling or is it just starting to rain? Post a comment and let us know.

Barclays Capital cuts RIM’s price target

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Hmmm… Not good Monday morning news for RIM today. Reuters is reporting that Barclays Capital has cut its price target on RIM from $90 to $60, and global handset sales in 2009 from 3% growth to 5% decline. Barclays also cut its smartphone growth estimate to 25% from 40%.

Barclays analyst Jeff Kvaal cut his estimates on RIM, citing the slowing demand for smartphones, offset partially by the company’s third-quarter phone launches.

“RIM’s four new device launches should partially balance the weak market,” Kvaal wrote in a note to clients.

RIM is trading right now just below the $42 mark, after opening this morning at $39.50.

|via Reuters|

Jim Balsillie: market environment ‘Intense’, Bold selling ‘Really Well’

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RIM Co-CEO Jim BalsillieSpeaking at an investor conference earlier today, RIM co-CEO Jim Balsillie said the current market environment is rife with challenges that require careful planning.

“This is a more intense time than I’ve ever known — more variables, more need to navigate, more hands on the wheel, eyes on the road right now,” he said. “If you don’t, you do it at your peril.”

Based on the news we posted a few days ago, investors can’t agree on whether RIM is in a prime position for growth or ‘chasing Apple’. However, most agree that the current economic downturn will have a negative effect on sales.

UBS Investment Research analyst Jeffrey Fan cut his RIM revenue and earnings estimates today to reflect lower sales during the slowdown.

Continue reading ‘Jim Balsillie: market environment ‘Intense’, Bold selling ‘Really Well’’

Two very different takes on RIM’s stock

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It’s not uncommon to find two opposing financial analysts on RIM’s stock in even the best of times, so it should come as no surprise that during the current global economic crisis we can’t get two analysts to agree on anything.

First we have Apple shareholder Howard Lindzon of Knight’s Bridge Capital, who is not so much down on RIM as he is long on Apple. However, he does state that RIM is “chasing Apple”, and should not cannibalize their sales with the BlackBerry Bold and Storm, but rather focus on improving the BlackBerry Curve. Hmmm. (via Yahoo!)

Continue reading ‘Two very different takes on RIM’s stock’

Sprint posts Q3 2008 results

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Sprint logoSprint has posted its Q3 2008 financial results, and the numbers show a sad consistency with previous quarters: fewer customers and less revenue. Sprint’s overall revenue fell 12% to $8.81 billion from $10.04 billion a year ago, while total wireless customers dropped by 1.3 million in Q3, bringing the tally to 3.5 million customers lost since Q3 2007.

You can see the full financial release after the jump or download a PDF version at the link below with tables and charts.

Sprint Q3 financial release PDF version

Sprint Nextel Q3 2008 financial release