Canaccord Genuity Morning Coffee on Research In Motion (RIMM): Tablet Time?
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Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Canaccord Genuity Morning Coffee on Research In Motion (Nasdaq: RIMM): Tablet time?
Blackberry maker Research In Motion reports its fourt-quarter and year-end earnings next week, and recent channel checks by Canaccord Genuity Technology Analyst T. Michael Walkley indicate the company’s February quarter tracked well versus his estimates and the company’s guidance. While Blackberry sales appear to be soft at T-Mobile, Sprint (NYSE: S) and Verizon (NYSE: VZ), Torch sales were steady at AT&T (NYSE: T) and international sales continued to be strong. For the quarter, Walkley expects EPS to come in at $1.76 on revenue of $5.664 billion. Domestically, the company continues to lose share to Google’s (Nasdaq: GOOG) Android and Apple (Nasdaq: AAPL) devices, and Walkley believes high-end smartphone share losses will lead to the permanent loss of many high-end ARPU subscribers. Walkley believes the company’s near-term sales could see an increased shift from 3G devices to 2G devices, which typically have a lower retail price. This could lead to more cautious sales guidance for the company’s May quarter; however, increased international sales should help compensate for share losses at leading North American carriers. Investors will also be looking for news on the upcoming release of the PlayBook tablet. RIM has not yet provided a release date for the tablet, but the internet is currently buzzing with rumours that it will be released on April 15 at Staples (Nasdaq: SPLS) Canada locations. Recently a Staples “District Challenge” calendar entry dated April 15 offered “bragging rights for the District that sells the most PlayBooks today.” Walkley tested the PlayBook at the recent Mobile World Conference, and was impressed with some of the features, but remains cautious on sell-through for the tablet given its high relative pricing and limited application selection, and also believes consumers may opt for non-tethered Apple and Android devices."
Blackberry maker Research In Motion reports its fourt-quarter and year-end earnings next week, and recent channel checks by Canaccord Genuity Technology Analyst T. Michael Walkley indicate the company’s February quarter tracked well versus his estimates and the company’s guidance. While Blackberry sales appear to be soft at T-Mobile, Sprint (NYSE: S) and Verizon (NYSE: VZ), Torch sales were steady at AT&T (NYSE: T) and international sales continued to be strong. For the quarter, Walkley expects EPS to come in at $1.76 on revenue of $5.664 billion. Domestically, the company continues to lose share to Google’s (Nasdaq: GOOG) Android and Apple (Nasdaq: AAPL) devices, and Walkley believes high-end smartphone share losses will lead to the permanent loss of many high-end ARPU subscribers. Walkley believes the company’s near-term sales could see an increased shift from 3G devices to 2G devices, which typically have a lower retail price. This could lead to more cautious sales guidance for the company’s May quarter; however, increased international sales should help compensate for share losses at leading North American carriers. Investors will also be looking for news on the upcoming release of the PlayBook tablet. RIM has not yet provided a release date for the tablet, but the internet is currently buzzing with rumours that it will be released on April 15 at Staples (Nasdaq: SPLS) Canada locations. Recently a Staples “District Challenge” calendar entry dated April 15 offered “bragging rights for the District that sells the most PlayBooks today.” Walkley tested the PlayBook at the recent Mobile World Conference, and was impressed with some of the features, but remains cautious on sell-through for the tablet given its high relative pricing and limited application selection, and also believes consumers may opt for non-tethered Apple and Android devices."
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