Sunday, November 18, 2012

RIM: Sterne Agee Cuts FYQ4 Estimates; Performance Mixed

Sterne Agee’s Shaw Wu this morning writes he’s been pressed by clients to assess the progress in Research in Motion’s (RIMM) February-ending fiscal Q4.

In response to his “supply chain feedback,” which shows BlackBerry losing share to Apple’s (AAPL) iOS and Google’s (GOOG) Android, Wu cut his BlackBerry shipment estimate for this quarter to 11.3 million units from a prior 11.9 million units.

As far as financials, Wu cut his revenue estimate to�$4.55 billion from a prior $4.7 billion, while cutting his EPS estimate to 86 cents from 95 cents.

That is roughly in line with the $4.63 billion and 86 cents the Street is currently modeling.

Wu offers some color on the trends for BlackBerry models in the quarter:

While we are picking up that the company�s higher-end BlackBerries, including the Bold 9900 and Torch 9800, are doing relatively better as users are attracted to their form factors that combine a touchscreen and keyboard, its other BlackBerries, which still make up a large portion of its mix, including the pure touchscreen Torch 9850, appear below plan. In addition, the reception on its recently refreshed Curve 9350 appears lukewarm. The industry and supply chain feedback we are getting is BlackBerry continues to lose momentum to both iOS and Android and Windows Phone appears to be gaining some traction.

RIM shares this morning are down 7 cents, or half a point, at $14.35.

Previously: RIM Seeks To Rebuild Brand, Says Bloomberg, February 28th, 2012

Fin

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