RIM's Rocky Road: Tech Weekly
RIM, the embattled Canadian handset maker, reported fourth-quarter results on Thursday that missed estimates.
The beleaguered BlackBerry maker posted non-GAAP earnings of 80 cents a share on $4.2 billion in revenue in its fiscal fourth quarter. The average estimate of analysts polled by Thomson Reuters was for a profit of 81 cents a share on revenue of $4.5 billion.
In addition to the earnings miss, former co-CEO Jim Balsillie resigned from the company's board of directors. RIM's CTO, David Yach, and Jim Rowan, COO, Global Operations are leaving the company as well.
Shares of Research In Motion closed the week higher, up 7.6% during Friday trading, to close at $14.70.
Shares of Red Hat, the provider of open source software, jumped 15.46% during the week to close at $59.89 after reporting strong fourth-quarter earnings on Wednesday.
The software specialist earned 29 cents per share on revenue of $297 million, an increase of 21% year-over-year. Analysts polled by Thomson Reuters were looking for earnings of 27 cents a share on revenue of $291.22 million.
In addition to the strong earnings, the company provided solid first-quarter guidance, above Wall Street expectations. Red Hat said it expects revenue between $307 million and $311 million, above analysts' forecast of $306.2 million. Excluding items, Red Hat expects earnings between 25 cents a share and 27 cents a share. Analysts have predicted earnings of 27 cents a share.
Red Hat also announced a $300 million buyback program in conjunction with the earnings release.
Earnings results from Best Buy (BBY) were in focus this week, with the Minnesota-based retailer missing estimates on Thursday, and announcing plans to close stores.
Best Buy said it earned $2.47 a share on revenue of $16.63 billion during its fourth quarter. Analysts polled by Thomson Reuters were expecting earnings of $2.16 a share on $17.22 billion in revenue.
In addition to the earnings miss, Best Buy unveiled a multi-year plan to save $800 million in expenses, including closing 50 U.S. big-box stores in fiscal 2013. The cost reduction plan will take place by fiscal 2015. It also announced plans to boost its performance, such as the opening of 100 mobile small format stand-alone stores in the U.S. during fiscal 2013.
Shares of Best Buy slipped 13.92% during the week to close at $23.68 on Friday.
Daily deals site Groupon(GRPN) revised its fourth-quarter results lower after market close on Friday, but re-affirmed its first-quarter guidance.
The Chicago-based company lowered its fourth-quarter revenue by $14.3 million and fourth-quarter earnings by 4 cents a share, citing an increase to the company's refund reserve accrual.