Research In Motion Ltd. (RIMM), having
missed estimates for four straight quarters, is seeking to avoid another
disappointment tomorrow as investors look for signs that its new
chief's turnaround plan is beginning to take hold.
RIM shares
have tumbled 16 percent on average the day after earnings since March
2011 according to a Bloomberg report. Analysts predict the maker of
BlackBerry smartphones will say sales fell at the fastest pace in a
decade, causing the Waterloo, Ontario-based company to miss its own
forecast for the three months through March 3.
The quarterly
results are the first for Thorsten Heins, the German-born chief
executive officer who took over in January and has vowed to do something
"dramatically different" to reverse the sales slump. For now, Heins has
to rely on an aging product lineup to win back users lost to Apple
(AAPL) Inc.'s iPhone and devices running Google Inc. (GOOG)'s Android
software, before a new generation of BlackBerrys makes its debut later
this year.
Sales probably declined 19 percent to $4.51 billion
last quarter, the average of estimates compiled by Bloomberg. On Dec.
15, RIM predicted $4.6 billion to $4.9 billion. Profit per share
excluding one-time items probably fell by more than half to 81 cents,
the low end of RIM's forecast of 80 cents to 95 cents.
RIM may also
give a forecast for this quarter. Analysts project further declines,
with sales dropping to $4.26 billion and earnings sliding to 66 cents a
share.
