RIMM Shocks Wall Street Posting Strong Earnings

Research In Motion (RIMM) posted surprisingly strong quarterly earnings today bumping the share price up. RIMM delivered a strong outlook as well, that signaled further growth despite the global economic slowdown as consumers embrace its newest BlackBerry smart phones. All this news send the stock up 21% in after hours trading. Currently, RIMM has a total of about 25 million BlackBerry subscribers, to go along with the millions of other users who own other RIMM supported smart phones. RIMM’s profit rose to $518.3 million, or 90 cents a share, in its fourth quarter ended February 28, from $412.5 million, or 72 cents, a year earlier. These results topped the expectations of analysts, which had been dampened by a profit warning that RIM delivered in February. Research in Motion has shown resilience against the adversity of the economic slowdown. The company is dominating and putting up unexpected strong earnings in times where they should be struggling. They have shown growth in many different fields which is unheard of for technology at the current moment. RIMM stated they plan to add 3.7 million to 3.9 million new subscribers in the next quarter. They added 3.9 million in the past quarter. Analysts had previously expressed concern about RIM’s ability to maintain momentum during the recession. If there are any concerns it would be to keep a close eye on operating expenses to make sure they can continue to succeed even if the economic downturn continues. I think RIMM has a large amount of growth as we should see the purchasing of smart phones increase as the unemployment rate decreases and the light of the tunnel seems closer. RIMM is a discounted great stock currently falling from over $100 in the past year. I would allow for some profit-taking in the markets tomorrow and then try and grab some shares.