Research In Motion (RIMM) Slammed After Results; Wall Street Throws In The Towel

September 26, 2008 12:34 PM EDT

Research In Motion (Nasdaq: RIMM) is under heavy pressure today after disappointing Q2 results and guidance. Many bullish analysts are now throwing in the towel on the stock following the report.

After the close, Research In Motion reports Q2 EPS of $0.86, 1 cent lower than the analyst estimate of $0.87. Revenues for the quarter were $2.58 billion, versus the consensus of $2.6 billion. Next quarter Research In Motion sees Q3 EPS of $0.89-$0.97, versus the consensus of $0.98 and sales of $2.95-$3.1 billion, versus the consensus of $2.94 billion.

Canaccord Adams' analyst was one of the most bullish analysts of RIM on the Street, but turned negative today. He called the results "light" and the guidance "disappointing". He also noted RIMM's management "is clearly showing a willingness to sacrifice near-term operating profits for the chance to become a tier one handset player as the world shifts from cell phones to smart phones." The firm lowered their rating from Buy to Hold and slashed their price target from $185 to $72.75.

Analysts at RBC Capital, UBS, Pacific Crest, Deutsche Bank and Citi also downgraded Research In Motion today.

Shares of Research In Motion are down nearly 27% currently to $71.32.

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• Deutsche Bank
• UBS
• Citi
• Canaccord Adams
• RBC Capital
• Pacific Crest Securities

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