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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
Trev
19 Dec 14 12:56:15
RT @advice_stocks: $BBRY YES!!!!!
Fletcher
19 Dec 14 12:54:24
$BBRY Today is one in hundred years chance to load BBRY!!! Bought over 4000 Jan, Feb, Jun, and 2016 Jan calls! A total of 37% of my account.
Marios Thomos
19 Dec 14 12:54:03
RT @ACInvestorBlog: $BBRY Check this out: China Mobile is on the list of carriers that will sell #BlackberryClassic http://t.co/Dqo2mGfOrY …
ProTradersNews
19 Dec 14 12:53:03
$BBRY: BlackBerry's Revenue Decline: Here's Why Investors Shouldn't Worry http://t.co/NcpfgWcomR http://t.co/YE1BOCbvSl
♥
19 Dec 14 12:51:51
RT @ACInvestorBlog: $BBRY Check this out: China Mobile is on the list of carriers that will sell #BlackberryClassic http://t.co/Dqo2mGfOrY …
Ben
19 Dec 14 12:51:01
RT @ACInvestorBlog: $BBRY Check this out: China Mobile is on the list of carriers that will sell #BlackberryClassic http://t.co/Dqo2mGfOrY …
Habib El Amiri
19 Dec 14 12:50:58
$BBRY is turning green before the market closes :)
Franco
19 Dec 14 12:50:51
RT @amberkanwar: John Chen on @BNN: Why he doesn't need the Classic to succeed for $BBRY turnaround http://t.co/Ut83p0kzzD http://t.co/kDQ…
Dr.awaji alhakami
19 Dec 14 12:49:37
RT @s_s_o0: $ADBE $LULU $AAPL $GOOGL $FB $TWTR $YHOO $BBRY #option #اوبشن فرصه عقد شهري $PSX Call 70 17Jan15 Op:2.15$ الشهر القادم
Janiece Talor
19 Dec 14 12:48:47
RT @MelissaLeeCNBC: Despite $BBRY miss BGC's Gillis haikus: We are even more Positive on the outlook for Blackberry stock Also bounce off l…
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$BBRY Blackberry Classic will be sold in China.
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nozby
19 Dec 14 12:43:24
RT @ACInvestorBlog: $BBRY Check this out: China Mobile is on the list of carriers that will sell #BlackberryClassic http://t.co/Dqo2mGfOrY …
  Tahir Ally
19 Dec 14 12:42:40
RT @ACInvestorBlog: $BBRY Check this out: China Mobile is on the list of carriers that will sell #BlackberryClassic http://t.co/Dqo2mGfOrY …
Antonio Costa
19 Dec 14 12:42:15
$BBRY Check this out: China Mobile is on the list of carriers that will sell #BlackberryClassic http://t.co/Dqo2mGfOrY page 3
michel
19 Dec 14 12:41:46
RT @ACInvestorBlog: $BBRY JP Morgan should increase again the price target ..now from $13 to $15... eh eh eh... who is buying today ? im c…
mercura16
19 Dec 14 12:41:24
RT @MelissaLeeCNBC: Despite $BBRY miss BGC's Gillis haikus: We are even more Positive on the outlook for Blackberry stock Also bounce off l…
Kevin Lewis
19 Dec 14 12:41:00
$BBRY Wow what a comeback!
Kim McCaw
19 Dec 14 12:40:32
RT @CTVKitchener: BlackBerry Q3 results: Hardware sales slip, leading to revenue shortfall: http://t.co/Zn68W1HdWU $BBRY
Paul R. La Monica
19 Dec 14 12:38:16
BlackBerry sales crumble. $BBRY has solid bounce from today's lows. But can Chen get revenue to grow in '15? Watch. http://t.co/vjBtnLIKE2
Jason UFC Fan
19 Dec 14 12:38:15
RT @MelissaLeeCNBC: Despite $BBRY miss BGC's Gillis haikus: We are even more Positive on the outlook for Blackberry stock Also bounce off l…
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19 Dec 14 12:38:07
$BBRY $AAPL: Duly Noted: Phish head south for NYE, replaced at MSG by big ... http://t.co/Kb9av2MqHC http://t.co/tZLxfqyjeB
FlashRatingsHOT
19 Dec 14 12:37:54
$BBRY has 4 analyst ratings in the last 2 days. Median target: $9. View here: https://t.co/teyoQjsi34
Antonio Costa
19 Dec 14 12:37:39
$BBRY If it goes green, then explode...
Antonio Costa
19 Dec 14 12:36:42
$BBRY JP Morgan should increase again the price target ..now from $13 to $15... eh eh eh... who is buying today ? im curious.. Faucette ?
Jon Fortt
19 Dec 14 12:35:26
After opening -6%, $BBRY might close down less than 1%. Here's what CEO John Chen said on @SquawkAlley: http://t.co/XIydc2nkW7
Jim Pavia
19 Dec 14 12:35:25
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Antonio Costa
19 Dec 14 12:34:00
$BBRY near the highs of the day !! Awesome Bulls !!
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19 Dec 14 12:32:54
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19 Dec 14 12:30:13
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19 Dec 14 12:29:48
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19 Dec 14 12:28:55
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19 Dec 14 12:28:51
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19 Dec 14 12:28:33
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19 Dec 14 12:28:22
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19 Dec 14 12:27:50
RT @amberkanwar: John Chen on @BNN: Why he doesn't need the Classic to succeed for $BBRY turnaround http://t.co/Ut83p0kzzD http://t.co/kDQ…
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19 Dec 14 12:26:21
RT @amberkanwar: John Chen on @BNN: Why he doesn't need the Classic to succeed for $BBRY turnaround http://t.co/Ut83p0kzzD http://t.co/kDQ…
Maleah
19 Dec 14 12:25:14
http://t.co/5qzSIjoPtA <-- In a few months this guy will likely be Super_trades 1st Millionaire student! $PAY $BBRY $CUBA $KNDI
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19 Dec 14 12:23:23
RT @amberkanwar: John Chen on @BNN: Why he doesn't need the Classic to succeed for $BBRY turnaround http://t.co/Ut83p0kzzD http://t.co/kDQ…
BusinessNewsNetwork
19 Dec 14 12:22:18
RT @amberkanwar: John Chen on @BNN: Why he doesn't need the Classic to succeed for $BBRY turnaround http://t.co/Ut83p0kzzD http://t.co/kDQ…
Amber Kanwar
19 Dec 14 12:20:09
John Chen on @BNN: Why he doesn't need the Classic to succeed for $BBRY turnaround http://t.co/Ut83p0kzzD http://t.co/kDQeeAIbLR
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19 Dec 14 12:15:51
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Beck.Asad
19 Dec 14 12:14:50
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19 Dec 14 12:12:26
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US Consumer News
19 Dec 14 12:12:25
BlackBerry Ltd's hold rating reiterated at S &P Equity Research. http://t.co/spqbn4uBvq $BBRY #BBRY
				
				
By  +Follow June 27, 2013 10:19PM
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