Research in Motion Ltd. (RIMM) announced that its subscriber base has increased more than 2.5% in the recent quarter in contrast to a subscriber loss expected by several analysts.
The Canadian company declared that its subscriber base has improved from 78 million to 80 million in the September quarter of fiscal 2013. In spite of loosing ground in the lucrative North American market, the company traded well in the emerging markets that were mainly attributable for the improved results. The numbers were quite unexpected, which pushed its beleaguered share price up by $0.29 (4.60%) on NASDAQ to $6.60.
Research in Motion is all set to unveil its second-quarter 2013 results on Thursday, September 27, after the closing bell. The current Zacks Consensus Estimate for the to-be-reported quarter is a loss of 46 cents, representing an annualized decline of 157.34%.
The Waterloo, Ontario-based company is facing severe problems due to an increasingly competitive landscape, primarily from Apple Inc.’s (AAPL) iPhone and an array of other smartphone manufacturers running on Google Inc.’s (GOOG) Android platform. Lack of applications in its legacy handsets mainly contributed to Research in Motion's huge market share loss in the high-end smartphone segment. The company is now concentrating on a new range of smartphones, which will run on its much awaited BB10 operating systems and has been incorporating innovative features that are expected to bring success for RIMM.
The manufacturer of Blackberry devices traded well in the emerging market where the company still holds an edge among corporate clients for its secured email service subsequent to its handset price cuts. Though the results are encouraging if the price cut fails to lure more customers, it would eventually impact its bottom line.
For fiscal 2013, the Zacks Consensus Estimate stands at a loss of $1.49 with a growth rate of (135.53%) and for fiscal 2014 the Zacks Consensus Estimate stands at a loss of 78 cents with a growth rate of 47.79%.
We maintain our long-term Neutral recommendation on Research in Motion. Currently, RIMM has a Zacks #3 Rank, implying a Sell rating over the short term.
More From Zacks.com