To say that yesterday wasn’t a good day for Research in Motion would be a bit of an understatement. The company announced second quarter fiscal 2012 results yesterday and pretty much everything said was a disappointment. It looks like, however, RIM’s night may have been even worse. The stock (RIMM) price dropped almost 22% in after-hours trading down $-6.45 to $23.09 one hour before the markets open.
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After the close of business yesterday, April 28th, Research in Motion released updated Q1 guidance for investors lowering their forecasted revenue down from guidance provided last quarter. RIM (RIMM), who has seen over a 12.5% drop in their stock price in over night trading, lowered their forcasted earnings from $1.47-$1.55 per share down to $1.30-$1.37 per share.
The reason for the adjustment… “primarily due to shipment volumes of BlackBerry smartphones that are now expected to be at the lower end of the range of 13.5-14.5 million forecasted in March and a shift in the expected mix of devices shipped towards handsets with lower average selling prices. Gross margin for the first quarter is expected to be similar to the 41.5% previously guided.”
In plain English, RIM isn’t selling nearly as many BlackBerry devices as they thought they would and hardly any high end BlackBerry devices at all. Some will argue that that RIM doesn’t have any high end BlackBerry devices, however, I will leave that rant for another post…
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Research in Motion co-CEO Jim Balsillie said yesterday in RIM’s Q2 investors conference call that RIM’s fiscal year 09 is proving to be extraordinary. I wonder if he would say the same thing after RIM’s more the 20% plunge in after-hours trading last night.
This chart doesn’t show the 20% drop in after-hours trading so we will update it with one that looks much more bleak at market open…
UPDATE…
Now RIMM is down almost 25%.
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After Reaching an all-time high a week or so ago, Research in Motions stock (symbol RIMM) has taken a bit of a dip over the passed few days.
Just yesterday RIM’s stock fell 6.3% and is down another 2.5% today at the time of this posting.
What do you think is causing the slide?
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