Earnings Preview: Palm

Palm (PALM) is expected to report Q4 earnings Thursday, June 26, after market close,  with a conference call scheduled for 4:30 pm ET. 

Guidance

The consensus estimate is (18c) for EPS and $302.10M for revenue, according to First Call.

Analyst Views

Deutsche expects Palm to print strong unit numbers with weak profitability levels, similar to its results all year. However, the firm thinks this is largely reflected in the stock price already. As such, Deutsche cautions against a short position in the shares going into the earnings. Deutsche thinks the company's future is entirely dependent on their new products, services and operating system which will not be commercial until next year. If these turn out to be good, then the stock could do well. If the new entries are not attractive then Palm risks bankruptcy, the firm says.

Key issues for the call include: Forward guidance; commentary on the competitive landscape, particularly in light of Apple's (AAPL) new 3G iPhone; and an update on current and new product offerings.