If the price action of the stock is any indication, what
looked like a blowout report for BlackBerry (NASDAQ:
) wasn't all that great once investors and analysts started
Probably the biggest headline to come from the release is the
on Tuesday that the consensus number was $-0.39 per share which
was later revised by the street to a 30 cent loss. That number
came in at a positive $0.22 cents per share. (Yes, positive, not
negative.) That alone caused the stock to spike more than nine
percent when it reopened for trading around 7:30AM.
According to CEO Thorsten Heins, "We have implemented numerous
changes at BlackBerry over the past year and those changes have
resulted in the company returning to profitability in the fourth
That's great news, but revenue came in at $2.68 billion versus
consensus of $2.84 billion-down two percent from the previous
quarter. Revenue and EPS are important but investors really
wanted to see how many Z10s the company shipped.
according to the release
. In comparison, Apple (NASDAQ:
) sold about
5 million iPhone 5s
during the first three days of launch. You know, the phone with
Revenue numbers broke down to 61 percent for hardware, 36
percent for service and three percent for software and other
revenue. A total of 6 million smartphones were shipped along with
370,000 BlackBerry PlayBook Tablets.
ON CNBC Thursday morning, Michael Genovese of MKM Partners
said he was concerned about the loss of BlackBerry's subscriber
base. According to Genovese, the company now considers a
subscriber somebody that owns a BlackBerry device instead of
somebody who owns a device and has a data plan.
The company reported losing three million subscribers-an
alarming number on its own but with the new definition of a
subscriber, that number could be significantly higher-as high as
Next, don't confuse one million Z10 phones "sold" with
"shipped." The release says, "shipped" which is an indication of
supplier orders. Whether companies like AT&T (NYSE:
) will see impressive demand for the phones is still unclear but
analysts are mixed.
In a research note earlier in the week, Goldman Sachs wasn't
optimistic. "The Z10 launch at AT&T on March 22 was
disappointing, with limited marketing and tepid sell-through at
AT&T and Best Buy (NYSE:
) stores alike. While we thought the international launch was
solid, the US launch is critical for BlackBerry's ultimate
In a Jefferies notes, Peter Misek said, "We checked with 30+
stores following the Z10's launch on 3/22. We think demand is
slightly better than our very modest expectations. Our checks
also indicate that AT&T Business is seeing significant
interest and could account for a meaningful portion of
As of 8:30 am EST, the stock had given back it's nine percent
gain and is now flat.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Profit with More New & Research
. Gain access to a streaming platform with all the information
you need to invest better today.
Click here to start your 14 Day Trial of Benzinga