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RIM’s Q4 likely to disappoint, iPhone 5 will overshadow BlackBerry 10

Research In Motion is likely to report a disappointing February quarter according to Jeffries & Company analyst Peter Misek, and the company may soon pre-announce results as a warning. “We are cutting our RIM estimates and target based on our belief that there is a greater than 50% chance that RIM will negatively pre-announce the February quarter,” Misek wrote in a note to investors on Thursday. “We believe sales of both RIM’s low-end and higher-end phones continue to be challenged.” Read on for more.

The analyst cut his earnings projections for RIM’s fourth fiscal quarter to $1.87 per share, down from his earlier estimate of $2.00 per share. Wall Street is expecting RIM to report earnings of $3.00 per share in the fourth quarter of fiscal 2012. Misek also now sees revenue of $4.2 billion in the fourth quarter, down from his earlier $4.6 billion forecast.

“We believe higher-end handsets are doing poorly outside of Enterprise sales with continued iPhone 4S and Android momentum (especially Samsung) causing issues,” Misek noted, adding that the launch of the iPhone 5 ahead of RIM’s first BlackBerry 10 handset will be “particularly troubling.”

Zach Epstein

Zach Epstein has worked in and around ICT for more than 15 years, first in marketing and business development with two private telcos, then as a writer and editor covering business news, consumer electronics and telecommunications. Zach’s work has been quoted by countless top news publications in the US and around the world. He was also recently named one of the world's top-10 “power mobile influencers” by Forbes, as well as one of Inc. Magazine's top-30 Internet of Things experts.

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