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Earnings Preview: RIM to report Q3 earnings after 95% run-up since last quarter

Research in Motion (RIMM) is scheduled to report Q3 earnings after the close on Thursday, December 20, with a conference call scheduled for 5:00 pm ET. Research in Motion is a wireless solutions provider and manufactures the BlackBerry smartphone and operating system... EXPECTATIONS: Analysts are looking for EPS of (35c) on revenue of $2.66B, according to First Call. The consensus range for EPS is (17c)-(58c) on revenue of $2.38B-$2.91B... LAST QUARTER: RIM reported Q2 EPS of (27c) against estimates for (46c) on revenue of $2.9B against estimates for $2.5B. During its Q2 earnings call, the company said it is on track to release the latest version of its BlackBerry operating system, BlackBerry 10, during 1Q13, and a launch event for BlackBerry 10 is scheduled for January 30, 2013. RIM also said it was in talks to license BlackBerry 10 and that the company was continuing to hold talks with potential partners. During the call, RIM said that it was still on track to achieve $1B in savings during FY13, including a workforce reduction of 5,000, the majority of which is expected to be complete by the end of FY12. The company also reported a BlackBerry subscriber base of 80M users, a number that was revised up from 78M just days before the Q2 earnings release... STREET RESEARCH: Street research has been generally cautious in the weeks leading up to Research in Motion's Q3 earnings report. Earlier today, Research in Motion was downgraded to Hold from Buy at Hudson Square. Shares have also been downgraded recently at National Bank and Canaccord. Prior to the recent downgrades, the stock was upgraded by at least four analyst firms since its last report, including an upgrade to Buy from Neutral at Goldman Sachs on November 29... PRICE ACTION: RIM shares have climbed over $6.50, or more than 95%, since the first day of trading following the company's Q2 report. In afternoon trading ahead of tonight's Q3 report, RIM shares are up 1.5%.