Shares of Research in Motion Ltd. tumbled at market open Thursday after the smart phone maker posted a fiscal first-quarter profit that missed Wall Street estimates and offered a lower-than-expected outlook.
The stock gave up $18.59, or 13 percent, to $123.84 by the afternoon.
Late Wednesday, the Waterloo, Ontario, company said its quarterly profit more than doubled to 84 cents per share, but missed the mean estimate of analysts polled by Thomson Financial by a penny per share.
In addition, the company projected a second-quarter profit of between 84 cents and 89 cents per share. Analysts had expected earnings of 90 cents per share.
In a note to investors, Goldman Sachs analysts Simona Jankowski and Thomas Lee cut the BlackBerry maker's price target to $156 from $163 and trimmed their earnings estimates for the next three years following the results.
The analysts said market expectations for the company may be unrealistic, and uncertainty remained over its product launches between August and September. They maintained a "Buy" rating on the stock.
Separately, Cowen & Co.'s Matthew Hoffman said the company's higher costs and later-than-expected launch of the its Blackberry Bold held back earnings.
He left his earnings estimates "virtually unchanged" and maintained a "Neutral" rating on the company, saying shares of rival Nokia Corp. are a better value at this point.
Shares of Research in Motion have gained more than 25 percent since the start of the year.
(This version CORRECTS that Cowen left his earnings estimates "virtually unchanged.")