Research In Motion Limited (RIMM) designs, manufactures, and markets wireless solutions for the mobile communications market worldwide. It provides platforms and solutions for access to information, including email, voice, instant messaging, short message service, Internet and Intranet-based browsing, and multimedia content through developing integrated hardware, software, and services.
It is scheduled to report its Q1 2013 results on June 28, 2012, after the bell.
Technical Overview
Key Metrics
- Market Cap: 5.71B
- 52-week trading range: 9.57 - 33.54
- Trailing P/E: 4.91
- Forward P/E: 19.11
- Price/Sales: 0.30
- Price/Book: 0.56
- PEG Ratio: -62.29
- Total Debt: 0.00
- Annual dividend yield: N/A
- Return on Equity: 12.23%
- Return on Assets: 9.26%
Recent EPS Actuals vs. Estimates
The company has failed to meet analysts' estimates in the last quarters. In the last quarter it reported $0.80 EPS, failing to meet analyst estimates of $0.81.
The consensus EPS is $0.01 based on 44 analysts' estimates, down from $1.33 a year ago. Revenue estimates are $3.15B, down from $4.91B a year ago. The median target price by analysts for the stock is $11.00.
Average recommendation: Hold
Source: Marketwatch
Analyst Upgrades and Downgrades
- On June 7, 2012, UBS reiterated Neutral rating for the company.
- On May 29, 2012, the company was upgraded from Mkt Underperform to Mkt Perform at JMP Securities.
- On March 30, 2012, RBC Capital Mkts reiterated Sector Perform rating for the company.
- On March 30, 2012, Canaccord Genuity reiterated Hold rating for the company.
- On March 30, 2012, Barclays reiterated Equal Weight rating for the company.
- On March 29, 2012, the company was downgraded from Mkt Perform to Underperform at FBR Capital.
- On February 15, 2012, Barclays Capital reiterated Equal Weight rating for the company.
- On January 19, 2012, FBR Capital initiated Mkt Perform rating for the company.
Latest Developments
- On May 31, 2012, The Wall Street Journal reported that Research In Motion, Ltd. won a federal court ruling in Canada this week allowing it to keep the BBM trademark for its messenger service.
- On May 17, 2012, Research In Motion (RIM) today announced that CESG, the National Technical Authority for Information Assurance in the UK, has approved the BlackBerry((((((((R)))))))) 7 operating system for government use.
- On May 8, 2012, Research In Motion (RIM) today announced key additions to its executive leadership team with the hiring of Kristian Tear as Chief Operating Officer and Frank Boulben as Chief Marketing Officer.
- On May 1, 2012, Research In Motion (RIM) today unveiled its vision for the BlackBerry((((((((R)))))))) 10 platform at the BlackBerry World((((TM)))) conference in Orlando, Florida and released the initial developer toolkit for native and HTML5 software development.
- On April 18, 2012, Research In Motion (RIM) today announced its most affordable BlackBerry((((((((R)))))))) 7 smartphone for customers in India. The new BlackBerry((((((((R)))))))) Curve((((TM)))) 9220 smartphone offers all the market-leading BlackBerry messaging and social-centric features that people love in India.
- On April 11, 2012, Research In Motion (RIM) today announced that Facebook((((((((R)))))))) for BlackBerry smartphones, Twitter((((((((R)))))))) for BlackBerry smartphones, BlackBerry((((((((R)))))))) Travel((((TM)))), BlackBerry App World((((TM)))) and BBM Music will now include BBM connectivity, making it even easier for users to stay in touch with their contacts, share experiences and content, and discover new things from their BBM community.
- On April 3, 2012, Research In Motion (RIM) today launched the highly-anticipated BlackBerry((((((((R)))))))) Mobile Fusion, RIM's next-generation mobile device management (MDM) solution for enterprise customers.
Competitors
Research In Motion Limited operates in Diversified Communication Services industry. The company could be compared to Apple Inc. (AAPL), and Nokia Corporation (NOK). Below is the table comparison of the most important ratios between these companies.
Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.
Competitors' Latest Development
- On June 15, 2012, Moody's announced that it has lowered Nokia Oyj's credit rating to Ba1 from Baa3. The outlook is negative. The short term rating is lowered to Not-Prime from Prime-3 with negative outlook.
- On June 15, 2012, Dow Jones reported that Nokia Oyj's small R&D facility in Burnaby, B.C., is caught up in a global restructuring of the Espoo, will see 10,000 layoffs across the Company.
- On June 14, 2012, Reuters reported that Nokia Oyj plans to cut 10,000 jobs globally while it warned the 2012 second-quarter loss from its cellphone business would be larger than expected.
- On June 14, 2012, Dow Jones reported that Nokia Oyj is selling its Vertu luxury handset business to private equity firm EQT, in a bid to raise cash. The sale is expected to close in the second half of 2012, follows an ongoing strategic review of non-core assets that could include further divestments of other assets.
- On June 14, 2012, Reuters reported that Nokia Oyj plans to cut another 10,000 jobs globally and warned the second-quarter loss from its cellphone business would be larger than expected.
- On June 14, 2012, Reuters reported that Nokia Oyj's shares fell by 9% after it has unveiled job cuts and additional restructuring activities.
- On June 14, 2012, Nokia Oyj announced plans to acquire imaging specialists as well as all technologies and intellectual property from Scalado AB. The transaction is expected to close during the third quarter of 2012.
- On June 14, 2012, Reuters reported that a U.S. judge has agreed to hear Apple Inc's request for an injunction against the sale of some Motorola phones, giving the iPhone maker a chance to head off a damaging ruling in the smartphone patent wars.
- On June 13, 2012, Reuters reported that Apple Inc must defend against a lawsuit accusing it of letting advertisers secretly track the activity of millions of mobile device users, a federal judge ruled, but Google Inc and several other defendants were dismissed from the case.
- On June 11, 2012, Reuters reported that Samsung Electronics Co Ltd denied, it was interested in acquiring Nokia Oyj.
- On June 7, 2012, Nokia Oyj announced that Woodcraft Rangers, a Los Angeles-based non-profit providing education and enrichment to more than 16,500 youth from in-need neighborhoods through after school programs, has chosen the Company's Lumia 900 to support its field operations.
- On June 7, 2012, Nokia Oyj announced that Nokia Oyj and Siemens AG's joint venture Nokia Siemens has been chosen by the Saudi Arabian operator Zain KSA to supply infrastructure and services to the company's 4G network in Saudi Arabian city, Jeddah.
- On June 7, 2012, Reuters reported that the latest version of Samsung Electronics Co Ltd's smartphone Galaxy S will go on sale in the U.S. market as planned, despite a sales injunction request filed by Apple Inc.
- On May 21, 2012, Reuters reported that the Chief Executives of Apple Inc and Samsung Electronics Co Ltd were summoned for court-directed mediation on Monday over the iPhone maker's claims the Korean firm has 'slavishly' copied some of its products.
- On May 21, 2012, Reuters reported that Eastman Kodak Company lost a preliminary patent ruling on Monday, as a trade panel judge ruled that Apple Inc and Research in Motion Ltd did not violate a Eastman Kodak Company patent because it was invalid.
- On May 15, 2012, Reuters reported that A US appeals court ruled on Monday that Apple Inc could press its bid for an immediate injunction to block the sale of some tablet computers made by Samsung Electronics Co Ltd based on allegations of infringement of one patent.
- On May 9, 2012, Reuters reported that a California judge Dismissed a lawsuit in which the Chinese firm Proview Electronics Co Ltd accused Apple Inc of tricking them into selling the iPad name for less than it might have.
- On April 26, 2012, VirnetX Holding Corp announced that the United States District Court for the Eastern District of Texas, Tyler Division, issued its patent claim construction, or Markman Order in the ongoing patent infringement action between VirnetX Inc.
- On April 24, 2012, Apple Inc announced that for the third quarter of 2012, it expect revenue of about $34 billion and diluted earnings per share (EPS) of about $8.68. According to I/B/E/S Estimates, analysts were expecting the Company to report revenue of $37 billion and EPS of $9.93 for the third quarter of 2012.
- On April 24, 2012, Reuters reported that Apple Inc infringed on a Motorola Mobility Holdings Inc patent in making its iPhones, iPads and other products, a judge for the International Trade Commission ruled on Apr 24, 2012.
- On April 20, 2012, Hagens Berman law firm announced that a lawsuit filed against Apple, Inc., claiming that the computing and consumer-products giant has built many of its devices including the iPhone and iPad using intellectual property owned by a Villanova, Penn.
Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.
Disclosure: I am long AAPL.
