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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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for bbry
John L. Bair
2 Jul 15 09:35:11
Wouldn't surprise me one iota if the Big Banks R shorting $MOBL after shorting $BBRY now accumulating $BBRY & making $ shorting $MOBL Games
Stocks & Trades
2 Jul 15 09:33:30
RT @StockTwits: Blackberry is having a brutal year. It just hit new 52-week lows BELOW $8/share -> http://t.co/KPvBNYZ2Pa $BBRY http://t.co…
John L. Bair
2 Jul 15 09:32:05
Well now that the Big Banks has flushed out all of the weak hands, maybe $CS $GS $MS can buy ultra cheap $BBRY shares, wasn't that the goal
2 Jul 15 09:29:35
RT @StockTwits: Blackberry is having a brutal year. It just hit new 52-week lows BELOW $8/share -> http://t.co/KPvBNYZ2Pa $BBRY http://t.co…
John L. Bair
2 Jul 15 09:28:46
Commented on StockTwits: $BBRY bouncy bouncy http://t.co/WHiaDsXzd8
FonsieTrader
2 Jul 15 09:27:32
$BBRY here comes the Bounce!!
Ross
2 Jul 15 09:26:50
RT @StockTwits: Blackberry is having a brutal year. It just hit new 52-week lows BELOW $8/share -> http://t.co/KPvBNYZ2Pa $BBRY http://t.co…
pgerman
2 Jul 15 09:25:56
RT @StockTwits: Blackberry is having a brutal year. It just hit new 52-week lows BELOW $8/share -> http://t.co/KPvBNYZ2Pa $BBRY http://t.co…
Danny
2 Jul 15 09:25:00
RT @StockTwits: Blackberry is having a brutal year. It just hit new 52-week lows BELOW $8/share -> http://t.co/KPvBNYZ2Pa $BBRY http://t.co…
John L. Bair
2 Jul 15 09:24:54
$BBRY shorts had a lot of help from the Big Banks that ipo that $MOBL & now want to ipo Good Technology, both losing customers to $BBRY FACT
Kaz Nejatian
2 Jul 15 09:24:50
RT @StockTwits: Blackberry is having a brutal year. It just hit new 52-week lows BELOW $8/share -> http://t.co/KPvBNYZ2Pa $BBRY http://t.co…
Michael James
2 Jul 15 09:24:03
We have a MASSIVE New Penny Stock Pick, Coming This Week! Get It Early: http://t.co/NH4n77GxeB $SA $NDRO $BBRY
Ross
2 Jul 15 09:23:24
$BBRY = dead money
Wilson Aikhomu
2 Jul 15 09:23:19
RT @StockTwits: Blackberry is having a brutal year. It just hit new 52-week lows BELOW $8/share -> http://t.co/KPvBNYZ2Pa $BBRY http://t.co…
Andrea Magri
2 Jul 15 09:22:54
RT @FonsieTrader: $BBRY and $SAP might announce a partnership very soon. $CSCO was just the begining
howardlindzon
2 Jul 15 09:22:40
RT @StockTwits: Blackberry is having a brutal year. It just hit new 52-week lows BELOW $8/share -> http://t.co/KPvBNYZ2Pa $BBRY http://t.co…
FonsieTrader
2 Jul 15 09:21:39
$BBRY and $SAP might announce a partnership very soon. $CSCO was just the begining
StockTwits
2 Jul 15 09:19:39
Blackberry is having a brutal year. It just hit new 52-week lows BELOW $8/share -> http://t.co/KPvBNYZ2Pa $BBRY http://t.co/U3jlhOqclb
Katy
2 Jul 15 09:18:58
$bbry..7.94..looks up.
Joseph Abraham
2 Jul 15 09:18:55
Thanks Quantpost $BBRY for the follow! Looking forward to staying connected! #Gratitude #Happiness - Joseph
FonsieTrader
2 Jul 15 09:18:31
$BBRY No one in their right mind, will continue short the stock in these conditions! the stock is extremely exhausted!
Davide Fiore
2 Jul 15 09:18:30
Quantpost $BBRY Thanks for the follow!
John L. Bair
2 Jul 15 09:18:20
$BBRY slightly oversold :)
lluccipha
2 Jul 15 09:16:56
#Thank You Quantpost $BBRY http://t.co/IEBOvyKKth for following me on #Twitter #IFTTT
John L. Bair
2 Jul 15 09:15:18
Cover your shorts boys and girls $BBRY
Stefan Cheplick
2 Jul 15 09:14:18
Blackberry broke that chop (white lines) to the downside now making new lows $BBRY - http://t.co/yp8SZfDIfG
SMPH #Sanders2016
2 Jul 15 09:10:43
$BBRY received a new alert. Find out why at http://t.co/DySPCulznQ #stocks #daytrading #trading #mkt #NYSE #NAS… http://t.co/mWqUw11a7O
FonsieTrader
2 Jul 15 09:08:08
$BBRY bought 5000 shares of this bargain prices! it is guaranteed money!! This extremely oversold stock, could make a hard bounce here
subzero hedge
2 Jul 15 09:05:42
Commented on StockTwits: the #bbfactcheck says that $bbry is not far from attaining faucette's target http://t.co/0YHyJIVsdv
umbi1111
2 Jul 15 09:02:56
RT @ProTradersNews: $BBRY: BlackBerry Lifted to "Strong-Buy" at Vetr Inc. (BBRY): http://t.co/hy9WXMN6za
Penny Stock Secret
2 Jul 15 09:01:19
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here http://t.co/SVqoMkrw2z .. $EGO $SVM $BBRY
subzero hedge
2 Jul 15 08:59:45
$bbry looking like faucette may have #nailedit on that 7 dollar price target
mojojojo
2 Jul 15 08:58:19
@paulwoll $BBRY I had been trading the channel, but stayed away after that quip, so, thanks, saved me from some trouble
John L. Bair
2 Jul 15 08:57:37
$BBRY finishes green, you heard it hear first
Media Sentiment
2 Jul 15 08:56:02
$BBRY received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 205
Peter Taylor
2 Jul 15 08:55:42
RT @JohnLBair1: #BlackBerry $BBRY going back up https://t.co/tp3WxiInWO
Vladislav Hubar
2 Jul 15 08:54:11
$BBRY douo@
John L. Bair
2 Jul 15 08:52:36
Maybe a Big Gap up on Monday, would be nice $BBRY
WKRB News
2 Jul 15 08:50:52
BlackBerry Lifted to “Strong-Buy” at Vetr Inc. $BBRY http://t.co/fNhbmDOffP
Visceral Nociceptors
2 Jul 15 08:50:41
RT @ACInvestorBlog: $BBRY With stock trading sub $8 and 3.36B in cash, Blackberry is now vulnerable to a hostile takeover. $MSFT $CSCO $SAP…
Woll Street
2 Jul 15 08:50:25
$BBRY my tweet June 25th but also mentioned bearish move pre-earnings. https://t.co/EVZEPJA1HS
John L. Bair
2 Jul 15 08:49:55
I like my $BBRY announcements near end of trading sessions or while market is closed, don't like hostile takeover rumors though
Russell Barbour
2 Jul 15 08:46:01
http://t.co/SJHR0rbRDw 7 FREE video lessons from Multimillionaire Trader! $UGAZ $CSIQ $HUM $CLF $BBRY $TEG $INUV $FREE $XGTI $WPCS $NUGN
Trefis.com
2 Jul 15 08:45:46
Did BlackBerry's Weak Q1 Numbers Strengthen The Case For A Sale? http://t.co/FgyvOjTjph by Trefis Team $BBRY $bbry $MOBL
umbi1111
2 Jul 15 08:45:19
RT @ACInvestorBlog: $BBRY With stock trading sub $8 and 3.36B in cash, Blackberry is now vulnerable to a hostile takeover. $MSFT $CSCO $SAP…
Antonio Costa
2 Jul 15 08:44:59
$BBRY With stock trading sub $8 and 3.36B in cash, Blackberry is now vulnerable to a hostile takeover. $MSFT $CSCO $SAP $AAPL
John L. Bair
2 Jul 15 08:44:15
#BBFactCheck One under short attack $BBRY and one $MOBL losing customers to $BBRY Fact
ProTradersNews
2 Jul 15 08:44:03
$BBRY: BlackBerry Lifted to "Strong-Buy" at Vetr Inc. (BBRY): http://t.co/hy9WXMN6za
Richard Saintvilus
2 Jul 15 08:42:52
BlackBerry, AMD, 3D Systems: Declare Independence from These 3 Losers http://t.co/8xLtBU7s9o via @TheStreet $AMD $BBRY $DDD
John L. Bair
2 Jul 15 08:41:19
$BBRY It's A Game PPL, It's WS
				
				
By  +Follow June 27, 2013 10:19PM
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