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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.

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Results for bbry
James Sweeney
26 May 15 08:39:23
Wall St. #MarketMovers 5/26 Charter buys Time Warner $TWC BlackBerry job cuts $BBRY Twitter to buy Flipboard? $TWTR http://t.co/vYZqh15jyR
ModernWallStreet.com
26 May 15 08:39:23
Wall St. #MarketMovers 5/26 Charter buys Time Warner $TWC BlackBerry job cuts $BBRY Twitter to buy Flipboard? $TWTR http://t.co/3Fi1BzEoi7
JS3 Multimedia
26 May 15 08:39:23
Wall St. #MarketMovers 5/26 Charter buys Time Warner $TWC BlackBerry job cuts $BBRY Twitter to buy Flipboard? $TWTR http://t.co/ouHD7XIo8J
I Know First: Brasil
26 May 15 08:37:16
Get Today’s Algorithmic Forecast & 10 Stocks to Buy http://t.co/GFYaVPf2Lm $AAPL $BBRY
I Know First
26 May 15 08:37:16
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IKnowFirst Research
26 May 15 08:37:16
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я знаю первым
26 May 15 08:37:16
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Yaron Golgher
26 May 15 08:37:16
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Currency-prediction
26 May 15 08:37:16
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I Know First
26 May 15 08:37:16
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I Know First Italy
26 May 15 08:37:16
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Apple Stock News
26 May 15 08:37:16
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I Know First UK
26 May 15 08:37:16
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I Know First France
26 May 15 08:37:16
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Gold-prediction.com
26 May 15 08:37:16
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leahanne
26 May 15 08:37:08
FXI iShares FTSE China 25 Index Fund Market Cap http://t.co/h7E3VqoEAI $FXI $ITB $BBY $BBRY #FXI #pennystocks #investing
IH News Desk
26 May 15 08:32:11
BBRY BlackBerry Change http://t.co/4WdpuIZewV $BBRY $PBR $EWG $EWG #BBRY #stock #investing
Marc Hav
26 May 15 08:31:55
$BBRY Now let's see that binary $3 :-)
Marc Hav
26 May 15 08:30:09
$BBRY Perfect bear trap today :-) As expected and posted ! lol
Leilani Pips™
26 May 15 08:29:08
These rumours are like the boy who cries wolf...make up some new ones. $TWTR $GOOGL $BBRY
Mohsin Jeelani
26 May 15 08:28:05
RT @TheStreet: Yes, BlackBerry is still making new phones. And they're kind of awesome http://t.co/Bb9GEGPHbK $BBRY
ProVesting
26 May 15 08:25:03
$BBRY: BlackBerry Ltd (NASDAQ:BBRY) Lay-Offs and Restructuring Can't ...: http://t.co/CYrULIdLpD
Breaking News
26 May 15 08:14:03
$BBRY: BlackBerry Ltd (NASDAQ:BBRY) is laying off an unspecified number ...: http://t.co/M3z1zcEngR
BerryFlow
26 May 15 07:54:57
Key Benefits of a Share Repurchase Program | http://t.co/DxBCuyDjcu via @toulouse_paul #TeamBlackBerry $BBRY
James Nieves
26 May 15 07:54:57
Key Benefits of a Share Repurchase Program | http://t.co/1IVfDJd1Qs via @toulouse_paul #TeamBlackBerry $BBRY
Gavin Martinsson
26 May 15 07:54:03
Hahahaha Icahn and RIG. Really??? Really??? Who’s next? $BBRY?
Emylers
26 May 15 07:51:07
YINN Direxion Daily China Bull 3x Shares Day Low http://t.co/rJhIZ8tJCn $YINN $BBRY $PANW $IBB #YINN #investing #finance
imeprofile
26 May 15 07:48:44
$BBRY @BlackBerry @BlackBerryBlog I can see the shorts are at it again. We need some institutional buying - from about 11am....
ShareGage
26 May 15 07:48:10
Thank you @LearnBonds for our favorite comment of the day regarding $BBRY #stocks #investing #ShareGage
DennyT
26 May 15 07:43:37
SDS ProShares Ultra Short S&P 500 Change http://t.co/0NksqljB37 $SDS $FEYE $XLV $BBRY #SDS #invest #pennystocks
Usman zahid
26 May 15 07:37:40
RT @Bidnessetc: BlackBerry Ltd Initiates Buyback Program After Profitable Quarter http://t.co/jl70qUlYvG $BBRY http://t.co/24WlMVMuos
jason pun
26 May 15 07:36:18
i dont think anyone cares about $BBRY anymore. i think prem watsa is like the biggest share holder. he should cut his losses theyre finished
Emylers
26 May 15 07:35:41
DWTI VelocityShares 3x Inverse Crude ETN Last Trade http://t.co/76SCMpz4dI $DWTI $BBRY $CPG.TO $NUGT #DWTI #investing #finance
LearnBonds.com
26 May 15 07:33:26
BlackBerry Ltd (BBRY) Lay-Offs and Restructuring Can’t Stop Losses http://t.co/M3KkRTMhgd $BBRY
leahanne
26 May 15 07:33:10
BBRY BlackBerry E.P.S. http://t.co/oL7zOkZc3G $BBRY $BRK/B $XOM $GLD #BBRY #stockmarket #finance
Usman zahid
26 May 15 07:29:59
RT @Bidnessetc: BlackBerry Ltd An Attractive Takeover Target Amid Return To Profits http://t.co/EXbyFuNLj0 $BBRY http://t.co/yDS2PWy9uE
Breaking News
26 May 15 07:28:02
$BBRY $BRCD $OCR: Hot Stocks Alert: BlackBerry Limited (NASDAQ:BBRY), Brocade ...: http://t.co/Vm0G1DWirS
Marc Hav
26 May 15 07:19:53
$BBRY Levels lower are $10.26 (gap close) and $10.18. (because the market is blood red, will bounce later though) http://t.co/jdDmEDUs8w
Marc Hav
26 May 15 07:11:46
$BBRY Watch this chart. (get your own at http://t.co/91HHxaV5xg ) We still have a gap though... http://t.co/RQcja6QvoU
Carleton, E. S.
26 May 15 07:07:48
$BBRY needs more cowbell
Blue Oyster
26 May 15 07:07:43
Hoping $bbry continues to slide down. I want them to pay as little as possible for those 12M shares.
Alpha Maven Alerts
26 May 15 07:01:57
$BBRY active, relative volume: 3.73, 1H, 10:00 AM, #nasdaq
Invest | Donate
26 May 15 06:54:01
@lookn4wins: CTIX Cellceutix Corp. News http://t.co/jsFREbZTU5 $CTIX $FB $SWKS $BBRY #CTIX #invest #tradeideas
IH NASDAQ OMX
26 May 15 06:51:13
XLY Consumer Discretionary Select Sector SPDR Chart http://t.co/BnbagY4zp2 $XLY $PBR $BBRY $UNP #XLY #stock #stock
IH News Desk
26 May 15 06:49:11
UUP PowerShares DB US Dollar Index Bullish Fund Day High http://t.co/BBiHU6LuTx $UUP $BBRY $DE $EWH #UUP #pennystocks #share
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26 May 15 06:49:11
USO United States Oil Fund, LP EOD Data http://t.co/an77ZwkkEK $USO $BBRY $SYNA $AKS #USO #stocks #nasdaq
StockNewsWires
26 May 15 06:48:02
$TWC $AZO $BBRY: Buzz Stocks: Time Warner Cable Inc., AutoZone, Inc., and ...: http://t.co/htIEimeat0
Marc Hav
26 May 15 06:48:02
$BBRY Nice volume, could have legs today, maybe bounce off of $10.33 worst case.
lookn4wins
26 May 15 06:47:07
SYNA Synaptics, Inc. Last Price http://t.co/aCaLgXcYMd $SYNA $BBRY $GLD $AAL #SYNA #stock #tradeideas
danrocks
26 May 15 06:46:48
STEM StemCells, Inc. Yield http://t.co/BL4at9Je8U $STEM $DAL $SWKS $BBRY #STEM #stockmarket #investing
				
				
By  +Follow June 27, 2013 10:19PM
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