Research In Motion Misses Estimates

9:10am (EST) Futures are pointing towards a lower open this morning and the bulls look tired as we wrap up the last trading day of the week. The Durable Goods Orders Report, which just came out at 8:30am, was awful as August orders decreased 2.4%. That was far below the 0.4% increase that was widely expected by economists and down sharply from the 4.8% increase that was got in July. Dow futures are down 26, S&P 500 futures are lower by 4 while Nasdaq 100 futures are off by 8 points. Other economic reports due out this morning include the University of Michigan Sentiment Index for Sept and New Home Sales for August. Wall Street expects a number of 70.5 for the first report and 441,000 for the other. Shares of smartphone maker Research In Motion (RIMM, $83.06) are down 14% after reporting disappointing quarterly results. The company reported earnings of $1.03, ex-items, which was 3 cents better than what analysts had expected. Revenue for the quarter came in at $3.5 billion, up nearly 40% from the previous quarter but the Street was expecting $3.6 billion. RIMM added 3.8 million new BlackBerry subscriber accounts and at the end of the quarter, the total account base stands at approximately 32 million users. Another reason the stock is breaking down like a rented mule is because Research In Motion offered lowered guidance that also missed expectations. The company said sales for the next quarter would be $3.6-$3.85 billion, versus the consensus of $3.90 billion, and earning should come in between $1.00-$1.08, versus Wall Street’s estimate of $1.04. In any event, it should be another interesting day. Subscribers, check the Members Area for the trade updates. Rick@MomentumOptionsTrading.com]]>

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Research In Motion Misses Estimates

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