Strong BlackBerry Sales Drive Research In Motion Shares 10% Higher

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Strong BlackBerry Sales Drive Research In Motion Shares 10% Higher

4:50 pm on December 18, 2009 | Category: Business, Mobile Devices, Corporate

Research In Motion shares surged more than 10% today, in response to record third-quarter profits announced yesterday evening.

RIM earned a total of $628.4 million, or $1.10 per share, for the three month period ending on November 28. That’s up 59% from $396.3 million, or $0.69 per share, in the corresponding quarter a year ago. Quarterly revenue increased 41% to $3.92 billion, as the company’s popular BlackBerry smartphones continued to make inroads into consumer markets.

The most recent financial results seem to support RIM co-CEO, Jim Balsillie’s confidence that the BlackBerry brand can withstand tough competition from numerous new smartphones that have hit the market this year.

“While we remain concerned about competitive offerings, RIM has proven it has carved out a profitable niche in the mid-term,” commented Deutsche Bank analyst, Brian Modoff, who upgraded his rating of the stock to “hold” after seeing the third-quarter results.

Research In Motion shares now cost C$73.96 on the Toronto Stock Exchange, up $6.91 from yesterday’s close.