The Successful Investor Hotline – Friday, June 17, 2011

Article Excerpt

RESEARCH IN MOTION LTD., $27.24, Toronto symbol RIM, reported better-than-expected quarterly earnings this week. However, the company cut its full-year earnings forecast because of delays in launching its new smartphones. That caused the stock to drop 21% on Friday. In its 2012 first quarter, which ended May 28, 2011, RIM’s earnings fell 9.6%, to $695 million from $769 million a year earlier (all amounts except share price in U.S. dollars). Earnings per share fell 3.6%, to $1.33 from $1.38, on fewer shares outstanding. Even so, the latest earnings beat the consensus estimate of $1.32. Revenue rose 15.9%, to $4.9 billion from $4.3 billion a year. That fell short of the consensus revenue estimate of $5.1 billion. The company shipped 13.2 million BlackBerry smartphones in the quarter, up 17.9% from 11.2 million. It also shipped 500,000 of its new PlayBook tablet computers between April 19, 2011 and May 28, 2011. RIM will soon start selling the PlayBook in 16 markets outside North America, including…