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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
John L. Bair
1 Mar 15 18:50:47
Ditch the #Cloud and the #flash #drive with #BlackBerry #Blend: http://t.co/hRWQbCayfD via @YouTube $BBRY
Tundra Scott
1 Mar 15 18:40:42
Samsung throws curveball with new S6, mobile pay http://t.co/5jR1we3AC4 $BBRY #blackberry
Marc Hav
1 Mar 15 18:31:06
$BBRY John Chen Changes The Game Again - Soon They Will All Be Powered By BlackBerry http://t.co/b7s3oUwlsB
dan hecht
1 Mar 15 18:19:57
may start getting into options soon $BBRY has news though..... YAWN :)
Dick Lewis
1 Mar 15 18:05:53
RT @CVKedarnath: John Chen Changes The Game Again – Soon They Will All Be Powered By BlackBerry | http://t.co/8jkN26goNm $BBRY
David
1 Mar 15 17:57:56
Commented on StockTwits: $jcp $BBRY http://t.co/p9bCeM2Sj0
Eric Lee
1 Mar 15 17:55:43
RT @CVKedarnath: John Chen Changes The Game Again – Soon They Will All Be Powered By BlackBerry | http://t.co/8jkN26goNm $BBRY
Veeru789
1 Mar 15 17:51:33
John Chen Changes The Game Again – Soon They Will All Be Powered By BlackBerry | http://t.co/8jkN26goNm $BBRY
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Michelle
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$BBRY: BlackBerry Outlines Vision to Bring Unmatched Productivity and ...: http://t.co/hQAgoZAUrj
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$BBRY: BBM Introduces New Ways to Customize Your Chat Experience: http://t.co/CemtWiIlxj
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BlackBerry And Samsung Expand Enterprise Partnership | http://t.co/TxLI7MOwyH $BBRY
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Mark Trader
1 Mar 15 17:17:51
I banked over 200% in gains during my 14-day trial with http://t.co/L2jCaE1M1d. Their 5 guru traders are amazing. $BBRY $AXP $BK $BX
Adam
1 Mar 15 17:11:27
@RedDogT3 what $bbry options did you buy?
M. Elmore
1 Mar 15 17:05:26
$BBRY refuses to be denied. In the face of #android & #ios, I counted this company out (in the mobile… https://t.co/JF4st0hehD
Wall Street
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Why trade alone? Get real time trade alerts from 5 pro traders at http://t.co/iQWRYpOCQJ $BBRY $AXP $BK $BX
Bigglybobblyboo
1 Mar 15 15:54:09
$bbry $aapl $goog John Chen Changes The Game Again – Soon They Will All Be Powered By BlackBerry: http://t.co/mnLqT2JGhM - sent via UTB
Kaleb Moon
1 Mar 15 15:53:11
I like $BBRY,$DF and $ WWE for long term buys. Each have had their struggles but are now on the high road.
Wall Street
1 Mar 15 15:42:05
Why trade alone? Get real time trade alerts from 5 pro traders at http://t.co/iQWRYq6dIh $BBRY $AXP $BK $BX
Staude
1 Mar 15 15:38:25
$BBRY http://t.co/5CQgyeaEXJ undervalued.
WorldEconRecon
1 Mar 15 14:47:36
RT @Marc_Hav: $BBRY Just reached 50,000 all-time views on http://t.co/5vy2rH98ty BBRY posts are the most viewed, thanks everybody !
Marc Hav
1 Mar 15 14:39:09
$BBRY Update on http://t.co/ZOYssTF8ib http://t.co/Q2LOh0r4sE #tickertv http://t.co/f7bjYTc8Yt
Marc Hav
1 Mar 15 14:24:55
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RT @WeeklyOptTrader: $BBRY--A block of 15000 contracts of 12 strike Jan-16 calls on February 13th
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1 Mar 15 14:17:19
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bluefeather
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RT @FonsieTrader: $BBRY BlackBerry to Expand Software, Services Across iOS, Android, Windows Platforms $AAPL $GOOG http://t.co/aw5o8D1esL…
Marc Hav
1 Mar 15 13:46:49
$BBRY Find out what the #BlackberryPassport can do for YOU ! Free eBook. https://t.co/Edv7Yreode|
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$BBRY Hierarchy of Needs ? I'm good, I have a #BlackberryPassport @Blackberry http://t.co/GyzTIrJxdE
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$BBRY BlackBerry Outlines Vision to Bring Unmatched Productivity and Security Software and Services Read more: http://t.co/JD2bDoIXYQ
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1 Mar 15 13:14:03
RT @Marc_Hav: $BBRY Today's update (1MAR2015) http://t.co/Br8USJQA4Y
A Crusade for truth
1 Mar 15 13:13:13
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1 Mar 15 13:08:22
$BBRY to hit $50 this year and $100 next year @BlackBerry @BlackBerryCEO needs to listen to me
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Antoine Bapst
1 Mar 15 12:47:11
RT @Marc_Hav: $BBRY We have to keep telling our prospects and our customer base that we're supporting (multiple operating systems) because …
Marc Hav
1 Mar 15 12:43:18
$BBRY Today's update (1MAR2015) http://t.co/Br8USJQA4Y
Ben-Smith Bortey
1 Mar 15 12:38:34
RT @superfly_FR: Samsung and BlackBerry Bring Enterprise Services to KNOX and the New Samsung Galaxy S6 http://t.co/CIDemBaE4I $BBRY
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1 Mar 15 12:36:07
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$BBRY Get ready for some Blackberry March Madness :-)
sherlok
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RT @ACInvestorBlog: $BBRY Breaking news: Samsung and BlackBerry Bring Enterprise Services to KNOX and the New Samsung Galaxy S6 http://t.co…
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1 Mar 15 12:24:38
RT @Marc_Hav: $BBRY BlackBerry deepens partnership with Samsung http://t.co/oa9eFNIkQk
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$BBRY We have to keep telling our prospects and our customer base that we're supporting (multiple operating systems) because that's a fact.
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$BBRY BlackBerry deepens partnership with Samsung http://t.co/oa9eFNIkQk
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By  +Follow June 27, 2013 10:19PM
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