logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Blackberry In Free-Fall As Earnings And Sales Miss Big

By  +Follow June 27, 2013 10:19PM
Share:
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.


Signup for our daily newsletter and get our best articles emailed right to you!

Results for bbry
SC
30 Sep 14 20:56:59
@PattyEdwards @coffeygrinds tell me about and forget it if you have $BBRY, I have to change me password on $BBRY every 60 days also
Павел Ушаков
30 Sep 14 20:18:19
RT @DividendMonthly: Commented on: "BlackBerry: EPS Impact From 200,000 Passport Pre-Orders Is Good News" http://t.co/iigMxXBnqZ $BBRY
Family Investor
30 Sep 14 19:30:32
Market and Meaning – The Week Ahead 9/29/14 http://t.co/TJrPIuDOzY $AAPL $BABA $HD $BBRY $TSLA $IWM $SPY $GLD #ISIS http://t.co/J4eHapJlqH
Stockaholics
30 Sep 14 19:06:59
FPFI closed up 250% today! Huge Update and new pick coming: http://t.co/wSPWepHL5n $EGO $SVM $BBRY
Connie Serrette
30 Sep 14 19:05:12
$BBRY Welcome to the stock market
DayTrading Power
30 Sep 14 19:05:06
DTP's Wednesday morning Rooster picks : $SPEX $TKMR $VMEM $MNKD $VIMC $BBRY
Sarang
30 Sep 14 18:46:48
RT @ACInvestorBlog: $BBRY #Blackberry Passport sold out in United Kingdom http://t.co/zc8tDBgdt4 I think this smartphone will be a hit :)
CMC Insurance
30 Sep 14 18:44:11
#BlackBerry CEO says 200,000 Passport units ordered since launch http://t.co/qTVcKgst0P $BBRY
FlashRatings
30 Sep 14 17:23:21
Today's most heavily analyst rated stocks: $F $BBRY $ATHL $EBAY $FINL $ECYT $NKE $CPRX $RRC $CTAS https://t.co/FfyuNRIXnU
Trader Jack Flash
30 Sep 14 17:13:25
$BBRY $AAPL iPhone 6 Contaminated W Ebola Virus – 21,200 Confirmed Cases Since Friday Release http://t.co/uMALNMwOoo via @Dailybuzzlive #DBL
Guru Algo Trading
30 Sep 14 16:58:25
RT $AAPL Algos triggered SELL @ 19:56 in SIGMA-X, CROSSFINDER P/T 99.50 $MSFT $PCLN $BIDU $GOOG $FB $TWTR $AMZN $BBRY $NFLX $TSLA $QQQ #HFT
MundoBlackBerry
30 Sep 14 16:41:01
*ACTUALIZACIÓN* BBM for Windows Phone v.120.0.0.1 BETA disponible http://t.co/O6TVsf4iCd #MundoBlackBerry #BBRY $BBRY http://t.co/DhaaduP5SS
BBN
30 Sep 14 16:21:45
"@ACInvestorBlog: $BBRY #Blackberry Passport sold out in United Kingdom http://t.co/scJZClqDOB I think this smartphone will be a hit :)"
Stockaholics
30 Sep 14 16:09:51
FPFI closed up 250% today! Huge Update and new pick coming: http://t.co/wSPWepHL5n $SA $NDRO $BBRY
John L. Bair
30 Sep 14 16:01:23
#SEC $BBRY "shorts have created their own combined fund where they simultaneously short picked stocks-how they make $$ now-not up but down"
DogsOnDaGo
30 Sep 14 15:51:41
Whose buying $BBRY Dec calls? Someone is betting on a 30% gain in the underlying stock. http://t.co/Pn7vIJjJpj
Stocks News&Markets
30 Sep 14 15:33:01
Nate Michaud made $1,029 on $BBRY -Check it out! http://t.co/8TwpiLonkh Learn #howtotrade http://t.co/axK8SMSgo9 $FB $SPY $stocks
Antonio Costa
30 Sep 14 15:32:48
$BBRY BlackBerry Named A Leader In Enterprise Mobile Management http://t.co/8ZwqMRM2tS
awolam
30 Sep 14 15:32:40
RT @SeekingAlpha: Tablet And Smartphone Futures: Specialization http://t.co/AJhEiZVxKd $AAPL #APPLE $NVDA $BBRY
Steve Nurse
30 Sep 14 15:29:15
Blackberry Passport sold out in the UK. This stock still has a heartbeat, and over 53 million users $BBRY $QQQ http://t.co/b9spAxhlst
AlgoWar1337
30 Sep 14 15:27:19
RT @SeekingAlpha: Tablet And Smartphone Futures: Specialization http://t.co/AJhEiZVxKd $AAPL #APPLE $NVDA $BBRY
John Michael
30 Sep 14 15:26:07
RT @SeekingAlpha: Tablet And Smartphone Futures: Specialization http://t.co/AJhEiZVxKd $AAPL #APPLE $NVDA $BBRY
Antonio Costa
30 Sep 14 15:23:21
$BBRY #Blackberry Passport sold out in United Kingdom http://t.co/zc8tDBgdt4 I think this smartphone will be a hit :)
Craig Garbers
30 Sep 14 15:21:57
RT @SeekingAlpha: Tablet And Smartphone Futures: Specialization http://t.co/AJhEiZVxKd $AAPL #APPLE $NVDA $BBRY
Franco
30 Sep 14 15:20:58
RT @JohnLBair1: #WOW $BBRY #Encouraged by #reception of #Passport #Blend #BlackBerry will #release #unconventional #every #year http:/…
Seeking Alpha
30 Sep 14 15:19:02
Tablet And Smartphone Futures: Specialization http://t.co/AJhEiZVxKd $AAPL #APPLE $NVDA $BBRY
John L. Bair
30 Sep 14 14:56:36
#WOW $BBRY #Encouraged by #reception of #Passport #Blend #BlackBerry will #release #unconventional #every #year http://t.co/1Lfv4iuolz
James P Worthy
30 Sep 14 14:00:42
$BBRY Credit Suisse Downgrades BlackBerry Ltd http://t.co/losWsaXMtY
DayTrading Power
30 Sep 14 14:00:31
Live daytrade chat results: went 34/37 for +$1678 and traded $MACK $SCOK $NUGT $GPRO $BABA $CNET $CPRX $EBAY $CYBR $FB $BBRY and more
Tech Alerts
30 Sep 14 14:00:01
BlackBerry: No Turnaround Here http://t.co/KSHyk8BRYF $BBRY
fortuneir.com
30 Sep 14 13:27:46
RT @ACInvestorBlog: $BBRY I don’t care what Credit Suisse says about Blackberry.Im long/strong. Keep in mind, there are 90M shares short, s…
StockNews
30 Sep 14 13:22:17
$BBRY - Report of Foreign Issuer (6-k) http://t.co/OB3ochrKVX
Stocks News&Markets
30 Sep 14 13:22:14
$BBRY - Report of Foreign Issuer (6-k) http://t.co/qDcayw2iLb
john smith
30 Sep 14 13:22:07
$BBRY - Report of Foreign Issuer (6-k) http://t.co/5cAtKgjosT
NASDAQ
30 Sep 14 13:22:03
$BBRY - Report of Foreign Issuer (6-k) http://t.co/C9Lorqw2w7
The Motley Fool CA
30 Sep 14 13:21:49
RT @JoeySolitro: 4 Key Takeaways from @BlackBerry Ltd's Second-Quarter Report $BB.TO $BBRY http://t.co/tIzXOdr9LR @TheMotleyFoolCA
Nërdic
30 Sep 14 13:21:26
RT @ACInvestorBlog: $BBRY Citron loves #Blackberry Target $20 (report June http://t.co/JzdR9r59EO )
Blue Oyster
30 Sep 14 13:12:48
RT @ACInvestorBlog: $BBRY Citron loves #Blackberry Target $20 (report June http://t.co/JzdR9r59EO )
樱花 托尼
30 Sep 14 13:10:08
RT @SeekingAlpha: The Biggest 3 Technology Flops Of 2014 http://t.co/GggViiqJCw $BBRY $MSFT $AMZN $AAPL $GOOG $GOOGL
Mo Skelton
30 Sep 14 13:00:55
$BBRY these mofos can do what they like with SP. I have utter conviction this will at the very least double from these levels.
Telco Equipment Feed
30 Sep 14 13:00:26
Is BlackBerry Ltd The Old Apple Inc.? $bbry $aapl http://t.co/IiAk6L6OVn http://t.co/4WLdFMBMr4
Tech Industry Feed
30 Sep 14 13:00:26
Is BlackBerry Ltd The Old Apple Inc.? $bbry $aapl #TechIndustry http://t.co/xeiHEU2M6x http://t.co/dlGqmn0PiA
Seeking Alpha
30 Sep 14 12:59:55
The Biggest 3 Technology Flops Of 2014 http://t.co/GggViiqJCw $BBRY $MSFT $AMZN $AAPL $GOOG $GOOGL
Gary Manzano
30 Sep 14 12:52:30
@canuck2usa Thx, $BBRY looks like a good short here at the close
Jhon Fabio Cardona
30 Sep 14 12:50:52
RT @exxonjavier: $BBRY Por Carta Lunar; #RALLY alcista para el 1 de octubre. @Jhonfabcar @Jhonfabcar @kellype55261746 @latinsaxo @xavierse…
Exxon Javier
30 Sep 14 12:50:34
$BBRY Por Carta Lunar; #RALLY alcista para el 1 de octubre. @Jhonfabcar @Jhonfabcar @kellype55261746 @latinsaxo @xavierserbiacnn @xtbes
P-O Carrier
30 Sep 14 12:48:21
"@ali1t: $BBRY Credit Suisse downgrade is the dumbest in a while, $6 PT means $3.2Bn market cap=Cash on Hand #stupidityonwallstreet"
Exxon Javier
30 Sep 14 12:45:35
$BBRY En la mira por Carta Lunar buscar la mejor entrada; #RALLY alcista para el 1 de octubre. @urtrading @TBbursatil @Affl12 @reditum
BiGGsY™
30 Sep 14 12:39:56
Citron tells me to buy $bbry and short $gpro.... NAH.
Martin Chmiel
30 Sep 14 12:39:37
RT @ACInvestorBlog: $BBRY Citron loves #Blackberry Target $20 (report June http://t.co/kni0u7QXa2 )
				
				
By  +Follow June 27, 2013 10:19PM
Share:

Comments

 

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.