Where Will BlackBerry Go Post-Earnings?

With shares of BlackBerry (NASDAQ:BBRY) trading around $8, is BBRY an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

BlackBerry is a designer, manufacturer, and marketer of wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software, and services, it provides platforms and solutions for seamless access to information such as email, voice, instant messaging, SMS, Internet, intranet-based applications, and browsing. Its products and services feature the BlackBerry wireless solution, the Research In Motion Wireless Handheld product line, the BlackBerry PlayBook tablet, software development tools, and other software and hardware.

BlackBerry reported earnings on Friday morning, posting results that showed even wider losses than analysts had expected, though no one was particularly surprised. While new CEO John Chen remains as positive and motivated as ever about the prospects of the smartphone maker’s turnaround, the company still clearly has a long way to go before returning to profitability. BlackBerry reported a loss of 80 cents per share, versus 18 cents a year ago, while analysts had expected the figure to be around 55 cents. Revenue came in at $976 million, an 18 percent drop from the previous quarter and a whopping 64 percent drop year-over-year. Analysts had expected revenue to be around $1.1 billion. BlackBerry said that during the quarter it saw hardware revenue from 1.3 million smartphones, versus 1.9 million in the previous quarter, and sold a total of 3.4 million devices.

The company said its cash and investments totaled $2.7 billion as of the end of the fourth-quarter. “I am very pleased with our growth and execution in fiscal Q4 against the strategy we laid out three months ago. We have significantly streamlined operations, allowing us to reach our expense reduction target one quarter ahead of schedule,” Chen said in the company’s earnings release. “BlackBerry is on sounder financial footing today with a path to returning to growth and profitability.”