What Does Wall Street See for Research In Motion's Q1?

Seth Jayson, The Motley Fool
Updated

Research In Motion (NAS: RIMM) is expected to report Q1 earnings on June 28. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Research In Motion's revenues will compress -38.1% and EPS will shrink to a loss.

The average estimate for revenue is $3.04 billion. On the bottom line, the average EPS estimate is -$0.08.


Revenue details
Last quarter, Research In Motion logged revenue of $4.19 billion. 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
Last quarter, non-GAAP EPS came in at $0.80. GAAP EPS were -$0.24 for Q4 versus $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.

Recent performance
For the preceding quarter, gross margin was 33.4%, 1,080 basis points worse than the prior-year quarter. Operating margin was 5.1%, 1,720 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

The full year's average estimate for revenue is $12.53 billion. The average EPS estimate is $0.30.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 4,481 members out of 5,810 rating the stock outperform, and 1,330 members rating it underperform. Among 1,058 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 740 give Research In Motion a green thumbs-up, and 318 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 $17.31.

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The article What Does Wall Street See for Research In Motion's Q1? originally appeared on Fool.com.

Seth Jaysonhad 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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