RIM quarter projections go from bad to worse
RIM has had three consecutive quarters of bleeding revenue and its shares have hit a 9-year bottom as it approaches another quarterly results announcement, and things are looking even worse this quarter. Revenue will likely continue sliding and virtually every analyst out there expects the BlackBerry maker to suffer another terrible quarter.
“It’s going to be terrible with a scoop of worse for August,” Peter Misek, an analyst at Jefferies said.
While last year, RIM reported revenues of $4.9 billion for the first quarter of the year, now, that number is expected to have dropped to a mere $3.1 billion, with a per share loss of three cents. And that’s only to get worse in the second quarter of the year.
And while many think that RIM has hit the very bottom, recent developments at Nokia and earlier Palm show that what you think is the bottom could actually be the start to an even bigger drop in earnings. BlackBerry shipments and more details about the upcoming BlackBerry 10 will be the key factors to watch, and if BlackBerry 10 misses the back-to-school frenzy, it could be too little too late for RIM. What do you expect to hear from the company and does it have what it takes to get out of this mess?