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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
RickLejeune
25 Oct 14 09:06:16
Canada Will Never Permit The Chinese Takeover Of Blackberry http://t.co/BMZzfpaPSq $BBRY #stocks #investing
invest correctly
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All Touch Blackberry Passport Concept $BBRY $BB.CA http://t.co/oaD6O3FsfE
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RT @Benzinga: Weekly Highlights: #iPhone6Plus Demand Soars, BlackBerry-Lenovo Rumor And More $LNVGY $AAPL $BBRY $MSFT http://t.co/4A7wAeWsmV
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Mark Oldham
25 Oct 14 03:24:46
RT @SeekingAlpha: BlackBerry: How Many Passport Smartphones Has BlackBerry Actually Sold? http://t.co/9jaCBrLWH2 $BBRY
Fergus
25 Oct 14 02:18:24
$BBRY Welcome to the stock market
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Commented on: "BlackBerry: How Many Passport Smartphones Has BlackBerry Actually S... http://t.co/dzOiZcAiu7 $BBRY
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Our Penny Stock Alerts Gained 371% In 2 weeks! Sign Up For Free Text Alerts For Our New Pick: http://t.co/Wsu24zYrur $EGO $SVM $BBRY
DailyFinance
24 Oct 14 22:10:15
BlackBerry's new phone Is square, hip and surprisingly hot http://t.co/2FpJda409q $BBRY
Lavan Binfield
24 Oct 14 20:19:29
http://t,co/TDEBdgr9E5 $ALSO $UVXY $UGAZ $TSLA $BBRY $AAPL $GOOG $STSI $AMD $NVDA $INTC $BRCM $QCOM $ZNGA
Phillip Byers
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$BBRY Heard on Crackberry that a customer service rep said Passport will be on Verizon #teamblackberry #BlackBerry #Passport
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24 Oct 14 20:03:29
http://t,co/TDEBdgr9E5 $ALSO $UVXY $UGAZ $TSLA $BBRY $AAPL $GOOG $STSI $AMD $NVDA $INTC $BRCM $QCOM $ZNGA
RickLejeune
24 Oct 14 17:36:10
Apple Pay Big On Security But Adoption Rates Are Key http://t.co/FBju3URBNZ $AAPL $BBRY #ApplePay
DailyFinance
24 Oct 14 16:50:26
BlackBerry's new phone Is square, hip and surprisingly hot http://t.co/2FpJda409q $BBRY
Joe Attrux
24 Oct 14 16:11:11
RT @SeekingAlpha: BlackBerry: How Many Passport Smartphones Has BlackBerry Actually Sold? http://t.co/9jaCBrLWH2 $BBRY
Blue Oyster
24 Oct 14 15:41:48
@jmznvs sure they can. $aapl for music and angry birds, $amzn to buy $aapl products, and $bbry to get work done to pay for it all
Alysia Sarkisian
24 Oct 14 15:14:01
RT @SeekingAlpha: BlackBerry: How Many Passport Smartphones Has BlackBerry Actually Sold? http://t.co/9jaCBrLWH2 $BBRY
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24 Oct 14 15:10:16
BlackBerry: How Many Passport Smartphones Has BlackBerry Actually Sold? http://t.co/9jaCBrLWH2 $BBRY
Blue Oyster
24 Oct 14 15:08:44
#Blackberry #passport in stock again at http://t.co/7dRLRkgwls! Get them while you can! $bbry
Blue Oyster
24 Oct 14 15:08:05
@unemon1 yea, I don't think anyone thought that was going to happen. Still a buy though $bbry
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Our Penny Stock Alerts Gained 371% In 2 weeks! Sign Up For Free Text Alerts For Our New Pick: http://t.co/Wsu24zYrur $SA $NDRO $BBRY
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24 Oct 14 14:03:24
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24 Oct 14 13:46:07
RT @daily_finance: BlackBerry's new phone Is square, hip and surprisingly hot http://t.co/2FpJda409q $BBRY
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24 Oct 14 13:33:55
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Kevin Ahoy
24 Oct 14 12:49:28
RT @SeekingAlpha: 3 Reasons Why IBM's Pain Could Be BlackBerry's Gain http://t.co/IQAHzoBXG2 $AAPL #APPLE $IBM $BBRY
ajaygolmalgobisharma
24 Oct 14 12:45:48
RT @daily_finance: BlackBerry's new phone Is square, hip and surprisingly hot http://t.co/2FpJda409q $BBRY
jairo olmos
24 Oct 14 12:36:13
RT @daily_finance: BlackBerry's new phone Is square, hip and surprisingly hot http://t.co/2FpJda409q $BBRY
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DailyFinance
24 Oct 14 12:33:05
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RT @Patexia: #BlackBerry secures #patent for a #wearable device that can be used for phone unlocking http://t.co/bp5k6uLFdP $BBRY http://t.…
NY Shock Exchange
24 Oct 14 12:11:00
3 Reasons Why IBM's Pain Could Be BlackBerry's Gain http://t.co/bS3wBN8rXX … $AAPL #APPLE $IBM $BBRY @amberkanwar @jonfortt
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24 Oct 14 12:00:43
RT @SeekingAlpha: 3 Reasons Why IBM's Pain Could Be BlackBerry's Gain http://t.co/IQAHzoBXG2 $AAPL #APPLE $IBM $BBRY
Alysia Sarkisian
24 Oct 14 11:54:56
RT @SeekingAlpha: 3 Reasons Why IBM's Pain Could Be BlackBerry's Gain http://t.co/IQAHzoBXG2 $AAPL #APPLE $IBM $BBRY
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24 Oct 14 11:52:24
RT @SeekingAlpha: 3 Reasons Why IBM's Pain Could Be BlackBerry's Gain http://t.co/IQAHzoBXG2 $AAPL #APPLE $IBM $BBRY
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24 Oct 14 11:51:50
3 Reasons Why IBM's Pain Could Be BlackBerry's Gain http://t.co/IQAHzoBXG2 $AAPL #APPLE $IBM $BBRY
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24 Oct 14 11:45:52
RT @Patexia: #BlackBerry secures #patent for a #wearable device that can be used for phone unlocking http://t.co/bp5k6uLFdP $BBRY http://t.…
Patexia
24 Oct 14 11:18:50
#BlackBerry secures #patent for a #wearable device that can be used for phone unlocking http://t.co/bp5k6uLFdP $BBRY http://t.co/3W3QiCdUVv
Eternity101
24 Oct 14 11:12:46
RT @ACInvestorBlog: $BBRY #BES12 is coming in November ..... I think that is the best catalyst we could get... #long and #strong
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24 Oct 14 11:12:12
$BBRY #BES12 is coming in November ..... I think that is the best catalyst we could get... #long and #strong
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24 Oct 14 11:06:42
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Fanboy101
24 Oct 14 11:03:14
"@makescents: $AAPL 9 hacks in 9 months $BBRY 0 hacks in 9 years " of course. Cause there are 1000x less blackberry phones in use
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24 Oct 14 10:56:51
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24 Oct 14 10:54:49
RT @ACInvestorBlog: $BBRY BlackBerry CEO John Chen speaks to CNN's Kristie Lu Stout about his rescue plan http://t.co/wRMnDBUATK
				
				
By  +Follow June 27, 2013 10:19PM
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