Shares of Treo manufacturer Palm Inc., which is struggling to compete with Research in Motion's Blackberry and Apple's iPhone, shed 4.69% to $15.25 in AH trading Monday after the company announced it had swung to its first quarterly loss in more than three years. The company also issued lower-than-expected guidance for Q2. Palm reported a net loss for fiscal Q1 of $841,000 (-$0.01/share) versus earnings of $16.5 million ($0.16) in the year-ago quarter (see conference call transcript). Excluding items, earnings were $9.7 million ($0.09/share). Revenue came in at $360.8 million, up 1% from $355.8 million last year. Consensus analyst expectations were for EPS of $0.08 on revenue of $360.3 million. Palm is projecting Q2 revenue in the range of $370-380 million and EPS of $0.06-0.08, disappointing analysts who had forecast $0.11 on $413.5 million. Palm said the weak results are partly the result of new products "being introduced at aggressive price points to expand our reach into the market." "They need new products out as soon as possible," said Global Crown Capital analyst Pablo Perez-Fernandez. Palm recently unveiled the Centro, a $99 thin smartphone scheduled for an October release. Research in Motion will report quarterly results Thursday.
Sources: MarketWatch, Forbes, Bloomberg
Commentary: Palm Says It May Post Q1 Loss • Will Palm's Centro Cannibalize Its Pricier Models? • Trouble Expected To Continue For Palm Despite New Products
Stocks/ETFs to watch: PALM. Competitors: MOT, NOK, RIMM, AAPL. ETFs: BDH, FVI, WMH
Earnings call transcript: Palm F1Q08
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