CIBC Cuts Earnings Estimates On Research In Motion
Friday, December 16, 2021 10:20 AM



CIBC World Markets Inc. slashed its earnings estimates on Research In Motion Ltd. (NASDAQ:RIMM) (TSX:RIM.TO). The Blackberry maker on Thursday guided fourth quarter below consensus.

The company expects fourth quarter earnings per share in the range of 80 cents to 95 cents, versus CIBC estimate of 82 cents and consensus of $1.15. RIMM guided quarterly revenue of between $4.6 billion and $4.9 billion versus CIBC estimate of $4.5 billion and consensus of $5.0 billion.

CIBC analyst Todd Coupland said BB10 delays should not overshadow the company's international subscribers growth. The delay of BB 10 devices until H2/C2012 will keep RIM in a trading range given the concerns on the current product line, he added.

Coupland, who has price target of US$25 on the stock, cut its current year EPS estimates for the company to US$4.22 from US$4.38 and next year EPS estimates to US$3.75 from US$4.04.

"Lower US sales were offset by record International device sales (+30%) and higher sub growth," Coupland said in a note.

"Due to volatile shipment performance, investors should focus on services cash flow. We estimate its value at about $25/sh," Coupland said.

RIMM is trading 10.5 percent lower at $13.52 on the NASDAQ, while on the Toronto Stock Exchange, the stock is down 11.5 percent to C$13.98.


 

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