TORONTO — BlackBerry maker Research in Motion today exceeded first-quarter expectations when it reported a 33 percent rise in profit but disappointed investors with its guidance.
The Waterloo, Ontario-based company earned $643 million, or $1.12 per share, in the quarter that ended May 30. That compares with $482.5 million, or 84 cents, in the year-ago period.
Excluding a $175.1 million tax benefit and other one-time items, RIM earned $564.4 million, or 98 cents per share.
Revenue rose 53 percent to $3.42 billion, thanks in part to the addition of about 3.8 million net subscribers during the quarter.
The company beat the 94-cent-per-share profit forecast of analysts, but revenue was shy of the $3.43 billion expected.
In the second quarter, it expects earnings of 94 cents to $1.03 per share on revenue of $3.45 billion to $3.7 billion. Analysts expected 97 cents per share in earnings and $3.61 billion in revenue.
Shares of Research in Motion dropped more than 5 percent to $72.56 in after hours trading on the Nasdaq.
“The guidance was solid but not as good as the street was expecting, which is probably why the stock is getting hurt in the after hours,” said Peter Misek, an analyst with Canaccord Adams.
“Expectations were too high. Even with a performance that is outstanding, when you set a bar that is too high, even a high jumper can’t jump four meters.”
RIM’s stock has more than doubled since the March low of $35.05.
Genuity Capital Markets analyst Deepak Chopra also said the stock declined on higher expectations.
“They continue to do phenomenally well. There was obviously increased expectations. There was chatter that the numbers could even be bigger so I think that’s why you see the stock off a couple of dollars right now,” Chopra said.
RIM Co-CEO Jim Balsillie said in a release that they’ve captured a 55 percent share of the U.S. smart phone market. RIM’s competition includes Apple’s new iPhone, the new Palm Pre and the Google Android.
The Canadian company has been targeting the consumer market after enjoying success in the corporate market for years.