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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 Reid
31 Oct 14 15:51:10
Commented on: "BlackBerry updates BBM, plans to offer premium subscriptions" http://t.co/MVqsXfn5ap $BBRY
Stockaholics
31 Oct 14 15:28:14
Our Penny Stock Alerts Gained 250% In 2 days, So far! Big News: http://t.co/bMKiKj7wmb $SA $NDRO $BBRY
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31 Oct 14 15:11:23
$bbry UTB Reviews – 10 Days With A BlackBerry Passport: http://t.co/80W2xyYwVh - sent using the UTB app
Gustavo Valmont
31 Oct 14 15:10:32
RT @Mundo_BBerry: *ACTUALIZACIÓN*: BBM for Android v.2.5.0.32 disponible con posibilidad de programar mensaje y eliminarlo http://t.co/GEjG…
Kathi Neil
31 Oct 14 15:01:11
RT @nate_eng: I'd pay to keep BBM ad free. BlackBerry updates BBM, plans to offer premium subscriptions http://t.co/1jwIdpNesA $BBRY
Nathan England
31 Oct 14 15:00:54
I'd pay to keep BBM ad free. BlackBerry updates BBM, plans to offer premium subscriptions http://t.co/1jwIdpNesA $BBRY
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31 Oct 14 14:57:10
BlackBerry updates BBM, plans to offer premium subscriptions http://t.co/ENOOCT7t0N $BBRY
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31 Oct 14 14:23:14
@CNBCFastMoney @glumobile @KimKardashian Please have her do some commercials for her beloved $BBRY.
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31 Oct 14 14:12:05
$BBRY Daily short sale volume over the last month http://t.co/dJD0yWwUZj
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$bbry HUGE Savings At Shop BlackBerry Sale NOW!: http://t.co/EB5zxyxlcZ - sent using the UTB app
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31 Oct 14 13:12:07
RT @robertsawatzky: John Chen @BNN eyes selfie superiority for $BBRY, but isn't soliciting celebrity endorsements. "I have never met that l…
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$BBRY Mirror: #BlackBerryPassport review - a statement phone that's great for business http://t.co/yKOwuctEB4
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31 Oct 14 12:31:04
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31 Oct 14 12:30:43
RT @robertsawatzky: John Chen @BNN eyes selfie superiority for $BBRY, but isn't soliciting celebrity endorsements. "I have never met that l…
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$BBRY - Report of Foreign Issuer (6-k) http://t.co/9EWfNjWPYV
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31 Oct 14 12:18:21
$BBRY Get the New #BBM for Privacy, Control and Much, Much More http://t.co/fNq8Dd58nX How much is this worth alone ? +3B for sure...
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31 Oct 14 12:09:50
$BBRY Welcome to the stock market
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31 Oct 14 11:13:09
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31 Oct 14 11:11:40
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31 Oct 14 11:11:13
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31 Oct 14 10:51:29
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31 Oct 14 10:51:17
RT @amberkanwar: A sneak peek into one-on-one John Chen interview airing Monday on @BNN John Chen & Kim K: Bringing $BBRY back http://t.co/…
Amadalia I.K.E
31 Oct 14 10:37:30
RT @amberkanwar: A sneak peek into one-on-one John Chen interview airing Monday on @BNN John Chen & Kim K: Bringing $BBRY back http://t.co/…
Marios Thomos
31 Oct 14 10:37:14
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31 Oct 14 10:33:47
RT @amberkanwar: A sneak peek into one-on-one John Chen interview airing Monday on @BNN John Chen & Kim K: Bringing $BBRY back http://t.co/…
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31 Oct 14 10:33:04
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/dvxYQnSJab $EGO $SVM $BBRY
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31 Oct 14 10:22:05
RT @amberkanwar: A sneak peek into one-on-one John Chen interview airing Monday on @BNN John Chen & Kim K: Bringing $BBRY back http://t.co/…
Laird Elmski
31 Oct 14 10:16:57
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31 Oct 14 10:13:05
RT @amberkanwar: A sneak peek into one-on-one John Chen interview airing Monday on @BNN John Chen & Kim K: Bringing $BBRY back http://t.co/…
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31 Oct 14 10:11:31
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31 Oct 14 10:10:16
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31 Oct 14 10:10:15
clayton: $BBRY 10.45 http://t.co/fUtCNr0QEn
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31 Oct 14 10:09:45
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31 Oct 14 10:06:22
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31 Oct 14 10:02:11
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31 Oct 14 09:59:23
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31 Oct 14 09:56:44
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31 Oct 14 09:53:38
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31 Oct 14 09:53:24
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FonsieTrader
31 Oct 14 09:29:15
$BBRY Back to action
				
				
By  +Follow June 27, 2013 10:19PM
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