Analyst Tim Long says RIMM's first quarter beat estimates on the top and bottom line. Most of the upside is reflected in better-than-expected device sales, where average selling prices were $25 above his estimate. He notes net Blackberry subscriber additions totaled 270,000, above the guidance of a range of 250,000 to 265,000.
Long looks for increased Blackberry Connect subscribers in the second half of fiscal 2005 (Feb.) to drive further subscriber upside. He raised the $1.44 fiscal 2005 EPS estimate to $1.75, and upped the $1.79 fiscal 2006 estimate to $2.00.
However, he maintains the neutral rating on the belief that the good news is factored in the stock. He says he's looking for increased subscriber growth, and he thinks margin upside will get more constructive.