Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?


Blackberry In Free-Fall As Earnings And Sales Miss Big

By  +Follow June 27, 2013 10:19PM
Tickers Mentioned:

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.

Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

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
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
16 Sep 14 12:17:36
There goes $BBRY... again
Investors Hangout
16 Sep 14 12:15:31
$NETE Market Cap Click Here: http://t.co/n8xxFCuaC2 Also See: $MBLY $IYT $BEAV $BBRY ~
16 Sep 14 12:08:07
$BRNW Ran Up 145% So Far Today! Huge News: http://t.co/0NGNmaYblA $EGO $SVM $BBRY
16 Sep 14 12:05:17
$BBRY someone is just about to hit the panic bottom.
16 Sep 14 11:59:49
$AVNR $BBRY $JRJC $NPSP $SOL $SSH $SZYM $VIMC $WB autocharts @ http://t.co/hj7PGeTQk3
Phillip Byers
16 Sep 14 11:00:22
$BBRY Can't wait until the 26th...my Bday weekend!!!
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
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
16 Sep 14 10:11:49
$ARWR $AVNR $BBRY $EXAS $HALO $IDTI $JRJC $NKTR $VIMC autocharts @ http://t.co/hj7PGeTQk3
16 Sep 14 10:11:31
$BBRY making waves..
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
16 Sep 14 09:37:00
$BBRY Short Percent of Float 18.59 %
Blue Oyster
16 Sep 14 09:36:35
$BBRY September 24th coming up quick. iPhone noise is fading. The beginning of something amazing is about to happen. #keepmoving #blackberry
16 Sep 14 09:28:11
$NUGT Chart $NUGT Most recent stock chart and technical analysis. $RSH $CMG $VTI $SSRI $BBRY $HNU.TO http://st http://t.co/YOrGaBM0u3
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
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
Jake13: $BBRY Buy? Click here to find out if $BBRY is a http://t.co/okOkxfMyTT
16 Sep 14 09:04:20
$AZFL Gained 68.2% In Just 3 Days, After Our Penny Stock Alert! Huge Update: http://t.co/f6EXGyxEe9 $EGO $SVM $BBRY
16 Sep 14 08:59:28
BBM Channels se podrá administrar desde Hootsuite http://t.co/YjPKwsuAka #MundoBlackBerry #BBRY $BBRY http://t.co/fjytinI8xE
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
16 Sep 14 08:51:56
$BBRY Buy? Click here to find out if $BBRY is a buy hold or sell. Watching these stocks. $X $MXWL $FB $JBLU ht http://t.co/2bluJINrxR
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
DennyT: GE Stock Chart $GE $BBRY $DDD $CIG $IYT Buy or http://t.co/YMaPUSHAeP
Ricochet Asset MGMT
16 Sep 14 08:36:21
RT @KingBond011: The BES algorithms are from Superman III - @BlackBerryCEO $BBRY #musings
Patrick Ciechonski
16 Sep 14 08:31:09
I can not find #BlackBerry on #MediaMarkt $BBRY #BES12 http://t.co/b8h9ivFIBO via @BlackBerryOS
16 Sep 14 08:20:34
GE Stock Chart $GE $BBRY $DDD $CIG $IYT Buy or Sell Opinion,200 Simple Moving Average,Open,Recent News,Showing http://t.co/WGEf5VDTaO
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
DennyT: Z Nasdaq $Z $FB $PTAH $BBRY $MNKD Opinion http://t.co/Jf71baSzxS
Investors Hangout
16 Sep 14 07:44:06
DennyT: RBY Income Statement $RBY $FB $AMBA $BBRY $FSLR http://t.co/HFGJlfDT53
Investors Hangout
16 Sep 14 07:44:05
DennyT: RBY Income Statement $RBY $FB $AMBA $BBRY $FSLR http://t.co/tPWtwzfS7S
  PING!!!
16 Sep 14 07:42:54
http://t.co/tVjgIKtcHC| $BBRY $BB.CA
16 Sep 14 07:38:23
http://t.co/Vv1sYDyeQn DennyT: HDOG HUB: Z Nasdaq $Z $FB $PTAH $BBRY $MNKD Opinion http://t.co/oGWDPuZOBL
16 Sep 14 07:33:10
Z Nasdaq $Z $FB $PTAH $BBRY $MNKD Opinion Today,TA,Low,News,Picking Up MOMO Stock Quote http://www.otcmarkets. http://t.co/jBmd6TpKTA
16 Sep 14 07:25:51
ARWR Stock Chart $ARWR $JNK $BBRY $EWY http://t.co/3vUo3KjSy9 http://t.co/dy6nseyTnS
Extreme Stocks
16 Sep 14 07:22:58
DennyT: RBY Income Statement $RBY $FB $AMBA $BBRY $FSLR http://t.co/eAnScn2Ujn
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
RT @KingBond011: Person asked can you spare a dime, I said no and gave my Q10 - @BlackBerryCEO $BBRY
16 Sep 14 07:17:01
RBY Income Statement $RBY $FB $AMBA $BBRY $FSLR Sell?,Volume,High,Headlines,Hit my list a few days ago Stock Q http://t.co/HlPVwyc7Yy
Investors Hangout
16 Sep 14 07:13:06
DennyT: BBRY Morningstar $BBRY $LITB $VIPS $SVXY $IBB Buy http://t.co/m2UQglSzpX
Investors Hangout
16 Sep 14 07:12:36
DennyT: BBRY Morningstar $BBRY $LITB $VIPS $SVXY $IBB Buy http://t.co/F3fFzX0dzd
BUZZ Just-In
16 Sep 14 07:00:57
Track trending assets in 1 watchlist USDCAD $BBRY USDJPY $GPRO USDCHF http://t.co/v73NQ5MTVJ
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
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



blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.