Blackberry Maker RIM's Q2 Profit Grows, But Forward Outlook Disappoints

September 25, 2008 6:09 p.m. EST

Waterloo, ON (AHN) - Research in Motion announced Thursday second quarter earnings rose 70 percent on strong revenue growth. However, results were just shy of estimates and their third quarter outlook failed to impress.

The blackberry maker posted second quarter earnings of $495.5 million or 86 cents a share, compared with $287.7 million or 50 cents a share in the same period a year earlier.

Revenue was robust, growing 88 percent to $2.58 billion, from $1.37 billion last year.

Earnings were short of analyst estimates for earnings of 87 cents a share, according to FactSet Research. However, revenue was slightly better than the $2.55 billion expected.

Research in Motion said they added 2.5 million blackberry accounts in the second quarter, bringing the total subscriber base to roughly 19 million. The company also said 6.1 million blackberry units were sold during the quarter.

"Our enterprise business remains strong and our momentum in the consumer marketplace continues as we head into the holiday buying season with an amazing product portfolio and solid marketing support from partners," co-CEO Jim Balsillie said in a statement, according to Reuters.

For the third quarter, Research in Motion expects earnings of 89 cents to 97 cents a share while analysts are expecting 98 cents a share. Revenue forecasts are for $2.95 billion to $3.10 billion, above the $2.94 billion analysts are expecting.

Shares of Research in Motion fell 14 percent in Thursday afterhours trading to $83.77.