The Successful Investor Hotline – Friday, March 25, 2011

Article Excerpt

RESEARCH IN MOTION INC., $55.78, Toronto symbol RIM, reported better-than-expected earnings this week. However, the stock fell 11%. That’s because the company’s sales forecast for the current quarter fell short of the consensus estimate. In its 2011 fiscal year, which ended February 26, 2011, RIM’s earnings rose 38.8% to $3.4 billion from $2.5 billion in fiscal 2010 (all amounts except share price in U.S. dollars). Earnings per share rose 47.1%, to $6.34 from $4.31, on fewer shares outstanding. That beat the consensus estimate of $6.29 a share. The company shipped a record 52.3 million BlackBerry smartphones in fiscal 2011, up 43% from the prior year. That’s why revenue rose 33.1%, to $19.9 billion from $15.0 billion. For the first quarter of fiscal 2012, RIM expects revenue of between $5.2 billion and $5.6 billion. That’s lower than the consensus revenue forecast of $5.7 billion. However, RIM’s sales should improve once it starts selling its PlayBook tablet computer on April 19. As well, RIM will…