RIM (RIMM) Shares Slump Following Q3 Numbers; Q4 Shipments Expected to Fall 15-22%

December 15, 2011 4:46 PM EST
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Price: $14.64 +12.36%

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Shares of Research In Motion (Nasdaq: RIMM) are tanking Thursday afternoon following third-quarter earnings numbers and an outlook. At last check, the stock was trading at $14.03, down more than 7 percent from the close.

Revenue was up 5.9 percent from $5.495 billion during the third quarter of 2011 to $5.169 billion.

RIM's net income plummeted 71 percent to $265 million, or 51 cents per share. Adjusting for PlayBook and inventory provisions, earnings were a more robust $1.27 per share.

Analysts on the Street were looking for revenue of $5.27 billion and earnings of $1.19 per share.

Subscribers rose 35 percent to 75 million.

As expected, smartphone shipments were 14.1 million, and PlayBook shipments were just 150,000.

"As part of our commitment to improving our performance to better meet the expectations of shareholders and customers, we continue to evaluate ways to improve in several areas of the Company's operations," commented co-CEOs Jim Balsillie and Mike Lazaridis. "It may take some time to realize the benefits of these efforts and the platform transition that we are undertaking, but we continue to believe that RIM has the right set of strengths and capabilities to maintain a leading role in the mobile communications industry"

Looking to the fourth quarter, RIM sees revs of $4.6 billion to $4.9 billion and earnings of 80 to 95 cents per share. The Street is looking for sales of $5.12 billion and EPS of $1.18.

In addition, RIM gave smartphone shipments expectation of 11 to 12 million units in the fourth quarter, down 14.9 to 22.0 percent from the third quarter. No PlayBook outlook was given.

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