RIM has cautioned investors this afternoon that smartphone shipments for its first quarter of fiscal 2012 will fall short of previous forecasts. The PlayBook on the other hand, looks to be enjoying a warm reception, despite the lack of native email and Android application support. After the Canadian giant recorded record smartphone shipments last quarter but say stocks plummet 12 percent, how would Wall Street react to today’s news?
Facts are king so let’s begin with some number crunching. RIM’s BlackBerry smartphone shipments for fiscal Q1 2012 were forecast in the range of 13.5 to 14.5 million units. RIM now expects the actual number to be closer to the lower end of that range, roughly 13.5 million. Of those 13.5 million devices, the company expects a lower average selling price. As a result, revenue is expected to be slightly below the original forecast of $5.2-5.6 billion.
Now for some good news: BlackBerry PlayBook shipments continue to be in line with previous expectations and the devastating events in Japan played will not result in any significant supply disruptions. The full year fully diluted earners per share of $7.50 is also still on track. The combination of new BlackBerry smartphones and “prudent cost management” should propel stronger revenue in the third and fourth quarters of the fiscal year.
So how did Wall Street react? According to Bloomberg, “RIM fell $6.17, or 11 percent, to $50.43 in late trading, after closing at $56.59 on the Nasdaq Stock Market. It has lost 2.7 percent this year as of today’s close.”
via RIM
