Wednesday, December 21, 2005

RIMM Beats Street

RIMM seems to be hitting on all cylinders dispite the looming threat of a shutdown.

Net income rose to $120.1 million, or 61 cents per share, from $90.4 million, or 46 cents per share. Revenue rose 53 percent to $560.5 million from $365.9 million and was above analysts' forecasts of $549 million.

Adjusted net income of 71 cents per share topped the 65-cent mean estimate of analysts surveyed by Thomson Financial.

They gave the numbers a pretty bad beat and that revenue growth looks pretty good as well. The CEO seemed pretty pumped up as well:

"The business is really soaring. It's not just doing OK. It's soaring," James L. Balsillie, RIM's chairman and CEO told The Associated Press in an interview. "A lot of people have said `Wow, I thought it was all kind of tough,' but we've been telling everybody sales are fine."

They may have some subscriber problems due to the possible shutdown and they forcasted that number to be lower in the 4th quarter. If they settle those problems then it will be like a weight got lifted off of the stock. Seems like a decent time to put this guy back on the watchlist.

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