Palm slashes guidance, stock down nearly 16%

Thu, Feb 25, 2010

Finance, News

With Android making a strong push, and RIM and Apple still doing their thang’, Palm’s lineup of WebOS phones have seemingly been marginalized to the fringe of the smartphone market. Earlier today, Palm scaled back its earnings guidance and now expects 3Q revenue to fall somewhere in between $285 and $310 million. The street, however, was anticipating revenue to be around $425 million.

Unfortunately for Palm, their surprisingly low earnings forecast is spread out over the entire year, with their sales revenue for 2010 expected to fall “well below” the $1.6 billion mark it initially anticipated.

In a press release on the matter, Palm blamed “slower than expected consumer adoption” and “lower than expected order volumes from carriers” for its new earnings estimates. The market, true to form, didn’t react well to the latest news emanating from Palm, with Palm stock now trading at $6.86 a share, down nearly 16% for the day.

Palm will announce its 3Q results on Thursday, March 18.


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