Research In Motion Goes Negative

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Research In Motion Limited (NAS: RIMM) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 3 (Q4), Research In Motion missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped to a loss.


Margins shrank across the board.

Revenue details
Research In Motion logged revenue of $4.19 billion. The 37 analysts polled by S&P Capital IQ foresaw a top line of $4.51 billion on the same basis. GAAP reported sales were 25% lower than the prior-year quarter's $5.56 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.80. The 39 earnings estimates compiled by S&P Capital IQ anticipated $0.81 per share on the same basis. GAAP EPS were -$0.24 for Q4 against $1.79 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 33.4%, 1,070 basis points worse than the prior-year quarter. Operating margin was 5.1%, 1,550 basis points worse than the prior-year quarter. Net margin was -3.0%, 1,980 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.64 billion. On the bottom line, the average EPS estimate is $0.52.

Next year's average estimate for revenue is $15.57 billion. The average EPS estimate is $2.40.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 4,467 members out of 5,712 rating the stock outperform, and 1,249 members rating it underperform. Among 1,086 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 802 give Research In Motion Limited a green thumbs-up, and 284 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Research In Motion is hold, with an average price target of $17.63.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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