RIM, Nike shares stomped after hours
LOS ANGELES (MarketWatch) -- Shares of
RIM (RIMM) stock dropped 15% at $7.75 as the embattled BlackBerry maker swung to a bigger-than-anticipated loss on a sharp fall in sales.
RIM reported a first-quarter net loss of $518 million, or 99 cents a share, compared with the FactSet consensus estimate of a loss of 1 cent a share. In the year-earlier period, RIM earned $695 million or $1.33 a share. Revenue in the most recent period slid 43% to $2.8 billion, and Wall Street was looking for $3.1 billion. Read full coverage on Research In Motion.
The company also pushed back the launch of its BlackBerry 10 mobile operating system to early 2013, and investors had been expecting a fall launch for the platform.
Nike shares (NKE) slumped 13% at $84.50 after the apparel, footwear and equipment company said its fiscal fourth-quarter profit fell 8% at $549 million, or $1.17 a share. Analysts had expected earnings of $1.37 a share. Revenue rose 12% to $6.47 billion, below the $6.51 billion analysts had expected. Future orders, a key measure for the company, rose 7% compared with a year ago. Read more about Nike's earnings.
Stock in Ford (F) lost 3.3% to trade at $9.76, with the company saying it foresees second-quarter operational losses in its international divisions tripling from those in the first quarter. In a regulatory filing, the company noted competitive and pricing pressures as well as weakening currencies in South America. It also said the situation in Europe has "deteriorated significantly" because of economic woes and low consumer demand, and cited growing investment costs in Asia Pacific and Africa. Ford reported operational losses of $190 million for the regions in the first quarter. See MarketWatch's First Take analysis on auto maker's disclosure.
Ford said it still expects to post a profit for the second quarter because of strength in its North American unit and financial division.
Separately, shares of
In day-session trading, U.S. stocks closed off session lows following speculation of a breakthrough in Europe's efforts. Read more in Market Snapshot.
The Dow Jones Industrial Average (DJIA) finished down 25 points, or 0.2%, at 12,602.26. The S&P 500 Index (SPX) lost 0.2% at 1,329.04 and the Nasdaq Composite Index (COMP) declined 0.9% to end at 2,849.49.