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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
Keegan Benjamin
25 Apr 15 15:46:18
@Bigglybobblyboo $bbry ...There's a list of Apple followers on Market Guru - http://t.co/ApkTDgvjYP
Bigglybobblyboo
25 Apr 15 15:46:07
$bbry $aapl iOS Mail Or BlackBerry Hub – Which Is Better?: http://t.co/Ax6T5TFtnz - sent using the UTB app
Yahoo Canada
25 Apr 15 14:57:15
RT @YahooFinanceCA: #BlackBerry considers closing Sweden operations http://t.co/VYTxJuzZvc $BBRY http://t.co/hlCdYNUCLJ
Yahoo Canada Finance
25 Apr 15 14:57:02
#BlackBerry considers closing Sweden operations http://t.co/VYTxJuzZvc $BBRY http://t.co/hlCdYNUCLJ
TV_Trading Ideas
25 Apr 15 13:33:59
BBRY $BBRY http://t.co/U8Tg1BZ5Se
SmallCaps
25 Apr 15 13:29:59
http://t.co/FnKjvTaom4 <-- how to escape the 9-5 grind by learning to stock trade, knowledge is power $BBRY $RUSL $DNKN $KING $USO
Stock_Huntress
25 Apr 15 12:45:29
http://t.co/qIrCkx9Ogm <<-- keep uptodate with Profitly news and latest trades by other verified traders! $BBRY $DVAX $CLR $UGAZ
MundoBlackBerry
25 Apr 15 12:13:18
BlackBerry cerraría sus oficinas en Suecia http://t.co/A6TN9Ez5Wj #MundoBlackBerry #BBRY $BBRY http://t.co/k2pfxGPzVI
John L. Bair
25 Apr 15 11:37:26
#ListenUp #Apple Awkward Physical Adapters Can’t Match #BlackBerry’s #Elegant #Virtual #SIM #Solution | Inside $BBRY http://t.co/YMibdTijf7
Marcc Zapata
25 Apr 15 10:49:09
RT @Mundo_BBerry: *ACTUALIZACIÓN*: WhatsApp para BB10 incorpora llamadas de voz http://t.co/bI1kQJJWDm #MundoBlackBerry #BBRY $BBRY http://…
MundoBlackBerry
25 Apr 15 10:49:06
*ACTUALIZACIÓN*: WhatsApp para BB10 incorpora llamadas de voz http://t.co/bI1kQJJWDm #MundoBlackBerry #BBRY $BBRY http://t.co/DeNv9PmzD2
A Crusade for truth
25 Apr 15 10:26:09
@jdesignz @BlackBerry BBM need to spun off NOW/Pronto/ASAP/ TODAY/No_DELAY. $BBRY
A Crusade for truth
25 Apr 15 10:22:42
@FonsieTrader @BlackBerry Chen should give his best shot to get Patrick to invest $500Mil of his $8 Bil fortune to buy $BBRY shares
Russell Barbour
25 Apr 15 10:04:36
http://t.co/fmOyM2xelz <-- In a few months this guy will likely be Super_trades 1st Millionaire student! $PAY $BBRY $CUBA $KNDI
lookn4wins
25 Apr 15 09:50:24
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PolgarStocks
25 Apr 15 09:40:29
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Jake13
25 Apr 15 09:39:25
$BBRY stock Change Click Here: http://t.co/lhcr98WQ47 Also See: $RRMS $PZOO $SBUX $QRVO #stockmarket #tradeideas ~
John L. Bair
25 Apr 15 09:39:11
$FB #Facebook knows $BBRY #BlackBerry making a GR8 comeback! Users To Enjoy #WhatsApp’s New Voice Calling Feature http://t.co/xxzt2UqiCy
michelle kirchner
25 Apr 15 09:38:21
RT @Bidnessetc: #BlackBerry 10 Users To Enjoy WhatsApp’s New Voice Calling Feature http://t.co/UYG3y6zRtu $BBRY http://t.co/a0F03kJ7eR
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25 Apr 15 09:34:43
$CCO stock Message Board Posts Click Here: http://t.co/JEWJuQQuDP Also See: $PJET $UEC $COR $BBRY #stockmarket #tradeideas ~
IH News Desk
25 Apr 15 09:34:37
$PFPT stock Last Price Click Here: http://t.co/EbwlCm32n6 Also See: $CSTM $ASPS $TGT $BBRY #stockmarket #tradeideas ~
SmallCaps
25 Apr 15 09:33:56
http://t.co/dAThDBaDYZ <- A decent informational video from millionaire trader Tim Sykes $KNDI $SCO $BBRY $GLD $RUSS
nasdaqfan
25 Apr 15 09:30:20
$BBRY stock E.P.S. Click Here: http://t.co/ir5gX9cU7C Also See: $RCAP $ATAI $AGEN $IHG #stockmarket #tradeideas ~
Bidness Etc
25 Apr 15 09:30:18
#BlackBerry 10 Users To Enjoy WhatsApp’s New Voice Calling Feature http://t.co/UYG3y6zRtu $BBRY http://t.co/a0F03kJ7eR
IH News Desk
25 Apr 15 09:29:17
$SKX stock Tick Click Here: http://t.co/AuF6BxB4kQ Also See: $ING $CHOP $LVNTA $BBRY #stockmarket #tradeideas ~
Nabil Hach Al-luch
25 Apr 15 09:24:03
$BBRY BlackBerry Ltd’s 10 Users To Enjoy WhatsApp’s New Voice Calling Feature http://t.co/QZADCdkzxu
John L. Bair
25 Apr 15 09:21:31
RT @Lake_Avenue: Shares of #MobileIron drop 28% after reporting horrible #results & their #CFO resigns. Is #BlackBerry eating their lunch? …
Chrisfoo71
25 Apr 15 08:22:46
RT @Benzinga: Tech Highlights: Apple Watch Arrived, BlackBerry's Big Acquisition & More $AAPL $BBRY $GOOG http://t.co/Iutiyepy28
IH NASDAQ OMX
25 Apr 15 08:18:04
$AMSC stock Quotes Click Here: http://t.co/OMeFwaShAL Also See: $MCHP $BBRY $TANH $ADPT #stockmarket #invest #stocks #tradeideas ~
Ray Buckner, IAR
25 Apr 15 07:59:45
RT @Benzinga: Tech Highlights: Apple Watch Arrived, BlackBerry's Big Acquisition & More $AAPL $BBRY $GOOG http://t.co/Iutiyepy28
Quantpost $BBRY
25 Apr 15 07:59:43
$BBRY News: "Tech Highlights: Apple Watch Arrived, BlackBerry's Big Acquisition…" http://t.co/RJu1pS1S8F Analyze: https://t.co/WgFMW0Ul96
Benzinga.com
25 Apr 15 07:59:37
Tech Highlights: Apple Watch Arrived, BlackBerry's Big Acquisition & More $AAPL $BBRY $GOOG http://t.co/Iutiyepy28
Ruggyup
25 Apr 15 07:41:50
RT @ACInvestorBlog: Stocks to keep an eye on April 27, 2015 http://t.co/aWVtaR2ZRU $ANY $BABA $BBRY $IBIO $WBAI $WUBA $ZIOP
MattBurns
25 Apr 15 06:29:16
$BBRY is up in a good agreement with this bullish forecast: http://t.co/ozmaOasiyd $SPY
David Taylor
25 Apr 15 06:28:50
$BBRY is up in a good agreement with this bullish forecast: http://t.co/An2NLzx4rf $SPY
Don Right
25 Apr 15 06:28:26
$BBRY is up in a good agreement with this bullish forecast: http://t.co/qegZBHCGID $SPY
Gary Thomson
25 Apr 15 06:28:10
$BBRY is up in a good agreement with this bullish forecast: http://t.co/Z3S3RcTA7k $SPY
Gary Thomson
25 Apr 15 06:27:58
$BBRY is up in a good agreement with this bullish forecast: http://t.co/ueIxtvPN4N $SPY
BenCasey1
25 Apr 15 06:26:52
$BBRY is up in a good agreement with this bullish forecast: http://t.co/p65PXSLLJk $SPY
A Crusade for truth
25 Apr 15 05:21:54
$BBRY @BlackBerry If BBRY gives BBM spinoff biz to Morgan Stanley, suddenly PT goes from $7 to $70. This is Wall Street friends, real power
A Crusade for truth
25 Apr 15 05:20:13
$BBRY @BlackBerry Morgan Stanley bailed out by US taxpayers. They sold junk and called it AAA. You believe anything MS says?
A Crusade for truth
25 Apr 15 05:18:23
$BBRY @BlackBerry is the only alternative to walled garden of $AAPL valued at $700Billion
A Crusade for truth
25 Apr 15 05:17:02
$BBRY @BlackBerry Chen convince just one major player like $AMZN to take equity stake at $30/share. 2% dilution for AMZN for 20% in BBRY?
A Crusade for truth
25 Apr 15 05:15:23
$BBRY @BlackBerry Can pl someone explain what value will be generated with smart licensing of BB10 and H/W partnerships.
monestsignalen
25 Apr 15 05:15:02
Wat kopen de grote spelers volgens effective volume http://t.co/RpgzHd2zjV #aandelen $BBRY $CERS $SEAS
A Crusade for truth
25 Apr 15 05:14:44
$BBRY @BlackBerry Can pl someone explain what is the value of EMM provided by BES12 with TAM of 750 Mil devices. Best security.
A Crusade for truth
25 Apr 15 05:14:07
$BBRY @BlackBerry Can pl someone explain what is the value of the application of QNX in so many different verticals with right partnerships
A Crusade for truth
25 Apr 15 05:13:21
$BBRY @BlackBerry Can please someone explain what is the value of the potential of IoT biz that $BBRY may get if right partnerships done
A Crusade for truth
25 Apr 15 05:12:43
$BBRY @BlackBerry Can please someone explain what is the value of those 44,000 patents, average expiration far away.
A Crusade for truth
25 Apr 15 05:11:57
$BBRY @BlackBerry Can please someone explain why no spinoff BBM that is given a ZERO valuation today. Unlock $15/share that will grow
				
				
By  +Follow June 27, 2013 10:19PM
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