Stock Market

Research in Motion (RIMM), makers of the famous Blackberry phone, announced quarterly earnings on Thursday, and even though their numbers were good, apparently they weren’t good enough. Investors may be getting spoiled with RIMM’s great returns over the years, and with expectations growing higher and higher each time the company announces earnings, it’s becoming increasingly more difficult for investors to get a bump on earnings day. On Thursday, even though many analysts were looking for the $.50 per share that the company turned in, the stock dropped 2% in after hours trading.

It seems that after years of exceeding expectations, merely meeting them is not enough to please traders.

Looking at the numbers, the company is far beyond solid, and is one of the leaders in the smartphone business. The company has over ten million subscribers, and added 1.5 million last quarter. Compared to what the company did in the same quarter last year, RIMM doubled its EPS, from $.25 to $.50, and revenue more than doubled. Thestreet.com has an article outlining why investors were lukewarm on the report.

The future continues to look great for the company, as it continues to expand into new markets, and create innovative technology. RIMM has announced deals with Ukraine and the Spanish communications giant, Telefonica (TEF), and is continuing to unroll new software, hardware, and subscription plans.

Filed under: Uncategorized