Palm (PALM) Faces Lower Than Expected Sales, Share Price Down 40% In Past 3 Months

CL King & Associates (Analyst: Lawrence Harris) believe that the Palm Inc.’s (NASDAQ: PALM) revenue guidance of $1.6 to $1.8 billion is aggressive and will require Palm and its carriers to ‘execute strongly’ with ‘sustained sail sell-through’.

With reports from The Guardian newspaper indicating that a UK based retailer is taking desperate measures like offering two free airline tickets with the purchase of a new Palm Pre; and Palm’s global smartphone sell-through in the November quarter of 573000 units against shipment of 783000 units, CL King & Associates has projected an EPS loss of $0.87 for FY10. This has reflected in the 30% decline in share prices in the past 3 months.