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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
BYOD News
27 Mar 15 21:07:44
byod_news: byod_news: JohnLBair1: SwenjaKremer #BlackBerry #Secusmart #IBM #Samsung #Merkel #Cameron #DoD #Nato #G7 #POTUS $BBRY #BBM #EMM …
John L. Bair
27 Mar 15 21:05:55
$BBRY BlackBerry acquires #ICYMI #Secusmart, ups voice security ante | ZDNet http://t.co/nZjsRPHHFi
Franco
27 Mar 15 20:57:54
RT @JohnLBair1: $BBRY #BlackBerry beats #the street with surprise earnings | BlackBerry Blast! http://t.co/GwLfOzceMN
John L. Bair
27 Mar 15 20:57:38
$BBRY #BlackBerry beats #the street with surprise earnings | BlackBerry Blast! http://t.co/GwLfOzceMN
A.J. Khaira
27 Mar 15 20:55:04
@amberkanwar Market sometimes makes no sense..."The place where optimism most flourishes is the lunatic asylum."-Havelock Ellis $BBRY $AAPL
BYOD News
27 Mar 15 20:53:18
byod_news: byod_news: JohnLBair1: SwenjaKremer #BlackBerry #Secusmart #IBM #Samsung #Merkel #Cameron #DoD #Nato #G7 #POTUS $BBRY #BBM #EMM …
BYOD News
27 Mar 15 20:53:08
byod_news: byod_news: JohnLBair1: SwenjaKremer #BlackBerry #Secusmart #IBM #Samsung #Merkel #Cameron #DoD #Nato #G7 #POTUS $BBRY #BBM #EMM …
BYOD News
27 Mar 15 20:53:08
byod_news: JohnLBair1: SwenjaKremer #BlackBerry #Secusmart #IBM #Samsung #Merkel #Cameron #DoD #Nato #G7 #POTUS $BBRY #BBM #EMM #MDM #BYOD …
BYOD News
27 Mar 15 20:45:34
byod_news: JohnLBair1: SwenjaKremer #BlackBerry #Secusmart #IBM #Samsung #Merkel #Cameron #DoD #Nato #G7 #POTUS $BBRY #BBM #EMM #MDM #BYOD …
BYOD News
27 Mar 15 20:45:33
JohnLBair1: SwenjaKremer #BlackBerry #Secusmart #IBM #Samsung #Merkel #Cameron #DoD #Nato #G7 #POTUS $BBRY #BBM #EMM #MDM #BYOD #QNX #Blend…
A.J. Khaira
27 Mar 15 20:42:50
RT @amberkanwar: Blackberry up 6% in premarket by the end of the conference call in which Chen emphasized growth plans still on track $BBRY
BYOD News
27 Mar 15 20:38:59
JohnLBair1: SwenjaKremer #BlackBerry #Secusmart #IBM #Samsung #Merkel #Cameron #DoD #Nato #G7 #POTUS $BBRY #BBM #EMM #MDM #BYOD #QNX #Blend…
A.J. Khaira
27 Mar 15 20:38:34
RT @amberkanwar: Quick and dirty $BBRY vs expectations. Beats on the bottom but misses on all revenue expectations http://t.co/nRGEcYF907
SmallCaps
27 Mar 15 20:37:56
http://t.co/FnKjvTaom4 <-- how to escape the 9-5 grind by learning to stock trade, knowledge is power $BBRY $RUSL $DNKN $KING $USO
Sunshine
27 Mar 15 20:37:21
RT @amberkanwar: BlackBerry finished FY2015 with $235M in software sales. John Chen still sees ending 2016 with sales of $600M $BBRY
Shawn H
27 Mar 15 20:35:50
RT @amberkanwar: Chen reiterated that BlackBerry is hiring, especially in the security software side $BBRY
Martin
27 Mar 15 20:35:14
$BBRY They have $3.27 Billion in cash and will continue to follow thru with new acquisitions that will add value to BB thru 2015.
Sunshine
27 Mar 15 20:34:20
RT @amberkanwar: Chen reiterated that BlackBerry is hiring, especially in the security software side $BBRY
Sunshine
27 Mar 15 20:33:58
RT @amberkanwar: Chen says 90% of all phones sold this quarter were new generation phones that have higher margins $BBRY
John L. Bair
27 Mar 15 20:31:42
#Hey #Faucette & #Simona $GS & $MS #ICYMI $BBRY #BlackBerry buys #Movirtu for multinumber phone service - CNET http://t.co/szW9QMFM1g
Tirath Ramdas
27 Mar 15 20:25:07
Sigh. $BBRY doing good on EPS but sucking at revenue is as predictable as $AMZN doing the opposite.
John L. Bair
27 Mar 15 20:15:12
@SwenjaKremer #BlackBerry #Secusmart #IBM #Samsung #Merkel #Cameron #DoD #Nato #G7 #POTUS $BBRY #BBM #EMM #MDM #BYOD #QNX #Blend #Classic hm
Veeru789
27 Mar 15 20:08:38
– BlackBerry Finances Explained – Don’t Take Your Prejudice For Granted http://t.co/z97Sb5ZX2F $BBRY
High Stakes Blake
27 Mar 15 20:07:10
@PipsToDollars @VeeDub78 I would only play $BBRY on a straight play and not options. Risky. Gotta get in and out of those type of stocks.
Veeru789
27 Mar 15 20:04:53
– Morgan Stanley NOT EVEN CLOSE – BlackBerry Pulverises James Faucett http://t.co/cd7PHAwdUt $BBRY
IoT Attack
27 Mar 15 20:01:32
#BlackBerry $BBRY's #sandbox News from #IoT http://t.co/TnFMUFTa37 via JohnLBair1
Luciano Scatorchia
27 Mar 15 19:49:29
RT @JohnLBair1: #BlackBerry $BBRY's #sandbox News from #IoT http://t.co/fGQVSb1Zgk
John L. Bair
27 Mar 15 19:49:28
#BlackBerry $BBRY's #sandbox News from #IoT http://t.co/fGQVSb1Zgk
IMMIGRANT Financial
27 Mar 15 19:45:19
@ravi_nambiar @JonErlichman @tristanwalker the answer is not the way $BBRY has been doing it. They haven't fixed fundamental issues w/ OS
Antonio Jalil
27 Mar 15 19:40:06
@GEQSense Hola! ... did you buy the z10 ? remember you said you will? $BBRY
TalkMarkets
27 Mar 15 19:39:01
The #Stock Whisper Of The Day: $SPY $USO $BBRY http://t.co/Ct26hU0X47
John L. Bair
27 Mar 15 19:36:55
#Another garbage article Did we just wake up in an alternate universe? #BlackBerry $bbry turns a profit The Register http://t.co/P4j3J1wXRI
Leilani Pips™
27 Mar 15 19:36:31
The most anyone made on $BBRY today was 20 percent if they caught the 'top' and that's being generous with earnings premiums.
Leilani Pips™
27 Mar 15 19:32:34
I know a few people who had strangles and straddles on $BBRY today and the lost money on both. This is why I don't trade $10 stock.
RogerY
27 Mar 15 19:15:04
BlackBerry posts surprise profit, but revenue well short of expectations $BBRY via @WSJ http://t.co/5iAVy7zb0a
Market Eyewitness
27 Mar 15 19:04:22
$BBRY Blackberry's 4th quarter revenue was $976 million dollars in the fourth quarter, down from 2.76 billion dollars year-over-year.
Marva Harris-Watson
27 Mar 15 18:57:06
RT @amberkanwar: BlackBerry finished FY2015 with $235M in software sales. John Chen still sees ending 2016 with sales of $600M $BBRY
INVEX Banco
27 Mar 15 18:40:14
@BlackBerry $BBRY reportó una sorpresiva ganancia trimestral. http://t.co/k3XqmXW6Xh
Charles Smith
27 Mar 15 18:26:58
RT @HedgehogTrader: Blackberry $BBRY swings to profit +5% pre-market @TedDixon
#HelpYouGetGAINS
27 Mar 15 18:12:10
BlackBerry's Chen: Guidance Increasingly At Odds With Reality http://t.co/HLywz1Sb7w … $AAPL #APPLE $IBM $BBRY
TalkMarkets
27 Mar 15 18:09:01
#BlackBerry Ltd Smashes #Earnings Estimates, Misses Sales $BBRY http://t.co/9ETM46eXWY
Clinton
27 Mar 15 17:59:47
RT @theflynews: Market finishes week lower as Yemen conflict, data weigh on shares $KRFT $SNDK $INTC $MU $NXPI $APOL $BBRY $GM... http://t.…
Stallion
27 Mar 15 17:57:11
RT @TradeBlueOyster: $bbry did something this year that $tsla has yet to do. Make money and positive cashflow
Ritesh Anan
27 Mar 15 17:48:15
John Chen On BlackBerry Returning To Profitability $BBRY http://t.co/naDvFPDmIU via @benzinga
James DiPlata
27 Mar 15 17:46:56
RT @AsymmetricAlpha: Blackberry Shows Signs of Life. Posts Surprise Profit. http://t.co/2ZfJmNvlxR $BBRY $QQQ $AAPL $GOOG $FB $T $VZ
Phillip Byers
27 Mar 15 17:43:48
$BBRY The more I read threads the more I see many don't understand revenue decline was strategic with product rollout. Not a problem ^
Bigglybobblyboo
27 Mar 15 17:38:05
$bbry $aapl $goog BlackBerry Finances Explained – Don’t Take Your Prejudice For Granted: http://t.co/9QUfCwxxrC - sent using the UTB app
Anthony M Tucker
27 Mar 15 17:37:41
RT @AuthorShereeseM: @anthonycfo BlackBerry posts surprise profit, but revenue well short of expectations $BBRY http://t.co/PfpUKgQ3Cw via …
Jake Hamby
27 Mar 15 17:19:29
In a world… where most people buy an Android or iOS smartphone… some brave hero will buy a flip phone or even a $BBRY Passport. 😏
Blue Oyster
27 Mar 15 16:54:43
$bbry did something this year that $tsla has yet to do. Make money and positive cashflow
				
				
By  +Follow June 27, 2013 10:19PM
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