RIM surprises analysts, and itself, with Q4 results
Research In Motion beat its own profit forecast in the fourth quarter as the BlackBerry maker attracted half a million more subscribers than it had initially forecast.
The Waterloo, Ont.-based RIM earned $518.3 million US, or 90 cents a share, for the three months ended Feb. 28, the company's fiscal fourth quarter.
The firm made $412.5 million, or 72 cents a share, for the same quarter one year earlier.
Analysts were expecting RIM to produce earnings in the range of 84 cents a share, according to Thomson Reuters.
Better still, RIM said the company is on track to post profits of between 88 cents and 97 cents a share in the current quarter.
Company watchers were estimating RIM's earnings at 82 cents.
"Looking ahead into fiscal 2010, we see exceptional opportunities for RIM and its partners to leverage the investments and success of the past year to continue growing market share and profitability," said RIM's co-CEO Jim Balsillie in a press release.
RIM beats itself
In early February, RIM warned analysts and investors that the company would be on the low end of its earnings range of 83 cents to 91 cents for the period.
Instead, the company that usually does not surprise analysts hit the top end of that earnings band.
As well, the company figured to add approximately 3.4 million subscribers in the period. Again, RIM underestimated its results, gaining an additional 3.9 million BlackBerry users instead.
Sales for the period ended Feb. 28 were $3.46 billion, almost double the revenue of $1.88 billion for the same period one year earlier. Company watchers estimated revenue of $3.42 billion in the quarter.
Blackberry trumping cellphone slide
RIM has managed to skirt the slowdown in the traditional cellphone sector by adding applications to its popular BlackBerry device, analysts said. The firm has been helped by carriers who have been promoting the device heavily.
Verizon Wireless, for example, is currently selling the BlackBerry Pearl and Curve versions of the communicator at a deep discount depending on the length of the service contract.
As a result, RIM shares have been enjoying a decent run in the past few weeks, up 31.5 per cent compared to a recent stock low of $45.95 on March 9.