Research In Motion Ltd.
) is scheduled to release its fiscal third-quarter 2013 (ended
November 30, 2012) results on Thursday, December 20, after the
closing bell. The current Zacks Consensus Estimate for the
to-be-reported quarter is a loss of 35 cents, representing an
annualized decline of 127.9%.
Research In Motion has outperformed the Zacks Consensus
Estimate in only two out of the last four quarters with an
average earnings surprise of a negative 158.74%.
Second Quarter Recap
On September 27, 2012, Research In Motion reported fiscal
second-quarter 2013 financial results. GAAP net loss in the
second quarter was $235 million or a loss of 45 cents per share
compared to a net income of $329 million or 63 cents per share in
the year-ago quarter. Quarterly loss per share of 45 cents was
better than the Zacks Consensus Estimate of a loss of 46 cents
Total revenue in the second quarter of fiscal 2013 was $2,873
million, down by a whopping 31% year over year but way head of
the Zacks Consensus Estimate of $2,478 million.
Agreement of Analysts
For the fiscal fourth quarter of 2013, in the last 30 days,
out of the 29 estimates, there were no downward revision of
estimates but at the same time there were four upward revisions
of earnings per share estimates. Likewise, for the fiscal first
quarter of 2013, out of the 28 estimates, there were two downward
revisions of estimates while three revisions moved in the
For the fiscal year 2014, in the last 30 days, out of the 29
estimates, only one estimate moved downward while four moved in
the opposite direction. For fiscal 2015, out of the 33 estimates,
none have slashed their estimates, while seven have revised their
estimates upward over the same period.
Strong cash position coupled with upcoming BlackBerry 10
software-based smartphones has driven the estimates upward.
However, stiff competition from
) iPhones and
) Android-based smartphones may act as a headwind for the company
Magnitude of Estimate Revisions
Over the last 30 days, the current Zacks Consensus Estimate
has risen only by a penny to a loss of 35 cents for the fiscal
fourth quarter of 2013 while there was no change in estimate for
the first quarter of fiscal 2014.
Likewise, for fiscal 2014, during the last 30 days, the
current Zacks Consensus Estimate increased only by a penny to a
loss of $1.25 while for fiscal 2015, the current estimate stood
at a loss of 47 cents, which was 12 cents below the earlier
In the previous quarter, Research In Motion reported loss per
share of 45 cents, which fell short of the Zacks Consensus
Estimate by a penny. The current Zacks Consensus Estimates for
the ongoing quarter imply a 0.00% upside potential while for the
next quarter it contains a downside risk of 23.08% (essentially a
proxy for future earning surprises). Likewise, the estimate for
fiscal 2014 reflects downside potentials of 4.00% but for fiscal
2015, the growth potential stood at 82.98%.
We maintain our long-term Neutral recommendation for Research
In Motion. Currently, it has a Zacks #2 Rank, implying a
short-term Buy rating on the stock.
APPLE INC (AAPL): Free Stock Analysis Report
GOOGLE INC-CL A (GOOG): Free Stock Analysis
RESEARCH IN MOT (RIMM): Free Stock Analysis
To read this article on Zacks.com click here.