Blackberrys, Seach Engines, Oil -- Oh My!

Research in Motion

Q1 Rev:  $4.28 Bil

Q1 EPS:  $1.30

Q1 INCOME STATEMENT
Three Months Ended May 29, 2010
Revenue	$4,276,408
Cost of Sales	$2,387,169
Gross Margin	$1,889,239
	44.18%
Operating Expenses:
R&D	$276,094
SG&A	$516,797
Amortization	$88,596
Total	$881,487
Income from Operations	$1,007,752
Investment Income	$7,322
Income before Taxes	$1,015,075
Provision for Income Taxes	$294,372
Net Income	$720,703
EPS
Basic	$1.30

Analysts are expecting Q1 revenue and earnings per share to come in at $4.35 Bil and $1.34, respectively. The June 24 announcement is shaping up to be a bad day for RIMM shareholders.  Some may consider my estimates “close” to consensus, but don’t forget the old cliché “miss by an inch, miss by a mile.” 

Trading Recommendation:  Buy Puts

Visit http://tsmithson.blogspot.com/search/label/Research%20in%20Motion to read more about RIMM.

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Google

Q2 Rev:  $5.23 Bil

Q2 EPS:  $6.82

Income Statement
Three Months Ended June 30, 2010
Revenue	$7,060,054
Costs:
TAC	$1,827,402
Cost of Revenue	$785,035
Gross Margin	$4,447,617
Operating Expenses:
R&D	$862,072
S&M	$642,131
G&A	$462,810
Total	$1,967,012
Income from Operations	$2,480,605
Investment Income	$55,909
Income before Taxes	$2,536,514
Provision for Income Taxes	$556,563
Net Income	$1,979,951
Non-GAAP Adjustments	$2,207,201
Diluted EPS	$6.82

Expectations are for revenue of $5.02 Bil and EPS of $6.58.  My estimates are modestly higher than consensus with a 3.65% EPS surprise.  Given the stock’s lackluster performance over the past couple of months, this earnings announcement could serve as a catalyst for an overdue rally.

Trading Recommendation:  Buy Calls

Visit http://tsmithson.blogspot.com/search/label/Google for past articles relating to Google.    

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Exxon Mobil

Q2 Rev:  $89.86 Bil

Q2 EPS:  $1.29

Income Statement
Three months ended June 30, 2010
Total Revenue	$89,863
Costs & Other Deductions	$78,429
Income before Taxes	$11,434
Income Taxes	$5,144
NI w/ NC Interests	$6,290
NI Attributed to NC Interests	$172
Net Income	$6,118
EPS	$1.29

Analysts are missing the mark, once again, with Exxon Mobil.  Their performance last quarter was abysmal.  Currently I am forecasting second quarter revenue of $89.87 Bil.  Consensus is $98.92 Bil—a $9 Bil difference!  One would assume that after missing by over $6 Bil last quarter, some major revisions would be made.  Apparently that isn’t the case. 

Trading Recommendation:  Buy Puts

Visit http://tsmithson.blogspot.com/search/label/Exxon%20Mobil to see my past performance with XOM.


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RIMM/GOOG/XOM Ownership

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Author’s Family:  NO

Disclaimer:
· Opinions, estimates and projections contained in this report are of the author as of the date published and are subject to change without notice.
· This report is not, nor should it be construed as, an offer to sell or solicitation of an offer to buy any securities.
· Unless otherwise noted, all research reports provide information of a general nature and do not address the circumstances of any particular investor.