Research In Motion Goes Red

Research In Motion (Nasdaq: RIMM  ) reported earnings on June 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 2 (Q1), Research In Motion missed estimates on revenues and missed expectations on earnings per share.

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

Margins dropped across the board.

Revenue details
Research In Motion reported revenue of $2.81 billion. The 37 analysts polled by S&P Capital IQ expected to see net sales of $3.04 billion on the same basis. GAAP reported sales were 43% lower than the prior-year quarter's $4.91 billion.

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

EPS details
EPS came in at -$0.37. The 38 earnings estimates compiled by S&P Capital IQ averaged -$0.06 per share. GAAP EPS were -$0.99 for Q1 versus $1.33 per share for the prior-year quarter.

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 28.0%, 1,590 basis points worse than the prior-year quarter. Operating margin was -10.9%, 2,920 basis points worse than the prior-year quarter. Net margin was -18.4%, 3,260 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.47 billion. On the bottom line, the average EPS estimate is -$0.46.

Next year's average estimate for revenue is $10.12 billion. The average EPS estimate is -$1.50.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 4,479 members out of 5,808 rating the stock outperform, and 1,335 members rating it underperform. Among 1,054 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 735 give Research In Motion a green thumbs-up, and 319 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 $12.54.

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