Shares of Research In Motion (RIMM) increased 2% in after hours trading as the company reported better 3rd quarter earnings than expected. Analysts were looking for revenue of $5.4 billion and an EPS of $1.64.
RIM’s revenue rose 40% to $5.5 billion dollars. Shockingly, the company’s smartphone shipments were 14.2 million as RIM added 5.1 million new Blackberry users. Research in Motion had earnings of $1.74 a share and a profit of $911 million dollars. Margins were high at 43.6%.
The encouraging news for RIM shareholders is that the results do not include the performance of RIM’s newest technological invention, the Playbook. The company’s CEO Jim Balsillie is very optimistic that the Playbook will bolster earnings for quarters to come.
The results look good for RIM and investors may be emboldened by the good earnings report. I would still not buy shares at the $60 price level. The stock is still too expensive for my taste.
RIMM Isn’t Toast Yet is a post from:
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