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Blackberry In Free-Fall As Earnings And Sales Miss Big

By  +Follow June 27, 2013 10:19PM
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blackberry sheikh 640x426Shares for Blackberry (BBRY), who could be credited for popularizing the very concept of the smartphone, dropped precipitously on Friday after the company released an unexpectedly dismal quarterly earnings report.

For the quarter ended June 1st, Blackberry reported a loss of $67 million, or $0.13 per share on an adjusted basis, on revenue of $3.1 billion. This is in comparison to the prior year period during which the company lost $510 million, or $0.97 per share on revenue of $2.8 billion. The quarterly figures were dismally short of analyst expectations that had adjusted earnings at $0.07 per share on revenue of $3.4 billion.

The company’s stock went into free-fall almost immediately, dropping nearly 26 percent to $10.25 per share, a loss of nearly $4 dollars on the previous day’s close.

The news is of particular significance because the company’s very existence has been in question since late last year during the run-up to the release of its new Z10 and Q10 phones. It was widely feared that the company that had played such an instrumental role in creating the smartphone market in the first place was finally on its way out of the game.

As recently as a few months ago, analysts were expecting the company to lose $0.15 per share on an adjusted basis. But these estimates were revised drastically upward as a number of analysts upgraded Blackberry’s stock based on very generous sales estimates.

As it turns out, the company sold 6.8 million smartphones during the quarter, less than expected. And only 2.7 million of those phones were from either the Z10 or Q10 lines, while previous projections had estimated a total sales figure that was at least 10 percent greater. Furthermore, 4 million subscribers dropped Blackberry during the recently ended period.

Blackberry’s efforts to put up a good fight, until today, seemed as though they might have been doing the trick. Thursday's close saw the stock trading for $14.48, well off its $6.22 52-week low. The poor earnings report, however, confirms what many had suspected: that the company’s turnaround was cosmetic, or had been advertised even before it had actually taken place.

This may be one case where a good number of investors had a jump on the analysts, however, as nearly one third of the company’s available shares were being sold short ahead of today’s news, even amid all the hype that the Blackberry was in the process of a great comeback.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for bbry
Ron Sidwell
16 Sep 14 12:22:31
RT @chrispycrunch: 6 Reasons To Buy BlackBerry $BBRY Ahead Of Earnings - http://t.co/9mnIKdqWxj
stk_invst
16 Sep 14 12:22:21
$BBRY Nice weekly one eye chart Head & shoulder bottom ? - Now at resistance area. Long small http://t.co/zJse7n8M5a
FonsieTrader
16 Sep 14 12:17:36
There goes $BBRY... again
Investors Hangout
16 Sep 14 12:15:31
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16 Sep 14 12:08:07
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Helmer
16 Sep 14 12:05:17
$BBRY someone is just about to hit the panic bottom.
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16 Sep 14 11:59:49
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Phillip Byers
16 Sep 14 11:00:22
$BBRY Can't wait until the 26th...my Bday weekend!!!
TheStreetOption
16 Sep 14 10:29:02
$BBRY (09/16/2014) http://t.co/9b7CGZdlbq
Gregory Bent
16 Sep 14 10:26:55
RT $BBRY 3 Reasons to Buy BlackBerry Ltd. Before It’s Too Late http://t.co/4kr7hTx9dL http://t.co/6cEj7RXHvC Product and Earnings next wk
Nërdic
16 Sep 14 10:14:21
RT @OptionsPlay: $BBRY breaking above its $11 resistance here on high vol 1m/6m trend have been bullish since 8/18! http://t.co/VqwyxrhDoL
US_proptrader
16 Sep 14 10:11:49
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Helmer
16 Sep 14 10:11:31
$BBRY making waves..
OptionsPlay
16 Sep 14 10:08:13
$BBRY breaking above its $11 resistance here on high vol 1m/6m trend have been bullish since 8/18! http://t.co/VqwyxrhDoL
Gregory Bent
16 Sep 14 09:46:12
I just posted something on #mobioinsider re $BBRY Blackberry Passport http://t.co/Ia2OPAkSB8
Helmer
16 Sep 14 09:37:00
$BBRY Short Percent of Float 18.59 %
Blue Oyster
16 Sep 14 09:36:35
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lookn4wins
16 Sep 14 09:28:11
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Blue Oyster
16 Sep 14 09:25:40
$BBRY Use this exact commercial. Replace the Z10 with the Passport. Its time to reintroduce Blackberry to the world https://t.co/zqYaWcj8vf
Kazz
16 Sep 14 09:25:36
@MarketWatch $BBRY The Banksters are trapping bears AGAIN!!
Investors Hangout
16 Sep 14 09:19:44
Jake13: $BBRY Buy? Click here to find out if $BBRY is a http://t.co/bq8IqisBHQ
Investors Hangout
16 Sep 14 09:19:42
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Stockaholics
16 Sep 14 09:04:20
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MundoBlackBerry
16 Sep 14 08:59:28
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WallStreet
16 Sep 14 08:53:24
$BBRY - Is The Fight Between BlackBerry Ltd (NASDAQ:BBRY) And T-Mobile US Inc (NYSE:TMUS) Over? - http://t.co/3WU804M2N1
Jake13
16 Sep 14 08:51:56
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Investors Hangout
16 Sep 14 08:45:36
DennyT: GE Stock Chart $GE $BBRY $DDD $CIG $IYT Buy or http://t.co/RAEzerOpvz
Investors Hangout
16 Sep 14 08:45:33
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Ricochet Asset MGMT
16 Sep 14 08:36:21
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Patrick Ciechonski
16 Sep 14 08:31:09
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DennyT
16 Sep 14 08:20:34
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Investors Hangout
16 Sep 14 07:44:09
DennyT: Z Nasdaq $Z $FB $PTAH $BBRY $MNKD Opinion http://t.co/zgZhPOe5WH
Investors Hangout
16 Sep 14 07:44:08
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Investors Hangout
16 Sep 14 07:44:06
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Investors Hangout
16 Sep 14 07:44:05
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  PING!!!
16 Sep 14 07:42:54
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iHangout
16 Sep 14 07:38:23
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DennyT
16 Sep 14 07:33:10
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chartguy89
16 Sep 14 07:25:51
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Extreme Stocks
16 Sep 14 07:22:58
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Avida Capital
16 Sep 14 07:21:15
Commented on StockTwits: I thought you were a long term holder of $BBRY my friend, why do you post rapidly everyd... http://t.co/PGigADuDpS
Ricochet Asset MGMT
16 Sep 14 07:20:11
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DennyT
16 Sep 14 07:17:01
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Investors Hangout
16 Sep 14 07:13:06
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Investors Hangout
16 Sep 14 07:12:36
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BUZZ Just-In
16 Sep 14 07:00:57
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Trader Bob
16 Sep 14 06:58:13
Tuesday Dow opens - 37 and our single position $BBRY remains negative http://t.co/6MRVaQwqhd
Trader Bob
16 Sep 14 06:56:45
Tuesday Dow opens - 37 and our single position $BBRY remains negative http://t.co/V3FHJ3H0of
Trader Bob
16 Sep 14 06:53:40
Tuesday Dow opens - 37 and our single position $BBRY remains negative http://t.co/ZnS7ndlp3s
danrocks
16 Sep 14 06:50:43
$AVNR any other opinions on this? $EWY $NUGT $AMD $BBRY $JAZZ http://t.co/WJvwUxInMQ
				
				
By  +Follow June 27, 2013 10:19PM
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