Palm’s Earnings Report: Not Good
After a nice little jump from the announcement of the new Centro smartphone, shares of Palm fell almost 4% thanks to the company’s weak first-quarter results.
While analysts expected a profit of 8 cents a share for Q1, Palm reported a loss of 1 cent per share. And for the one-two punch combo, the Treo manufacturer also forecasted that next quarter would be another loss of 1-3 cents per share. (analysts expected 10 cents a share profit for that one)
According to one analyst, Palm’s numbers for the second quarter take into account the smaller margins of the new Centro without forecasting any smartphone growth – in other words, it just might be a really, really conservative estimate.
The Centro smartphone is a low-cost/budget smartphone that will sell for $99 with a 2-year contract. Sprint has exclusive rights to the phone for the first 90 days, after which we just might see it on some other carriers.
Palm Declines After Swinging to 1Q Loss – AP
