Turns Out, No One Really Bought Any BlackBerrys
Shares of BlackBerry (NASDAQ:BBRY) were halted shortly before 3 p.m. EDT on Friday afternoon, down about 2.4 percent at $10.27 for the day so far. The beleaguered smartphone maker apparently wanted to brace the markets for the preliminary release of its fiscal second-quarter financial results, which missed analyst expectations by a long shot. Shares collapsed as much as 24 percent immediately following the news, to about $8, before rebounding somewhat.
According to the preliminary report (real earnings will be reported September 27), revenues are expected to come in at $1.6 billion, well below the average analyst estimate of $3.06 billion. The company reported that approximately 5.9 million smartphones were sold through to end users, and that it will recognize revenues on about 3.7 million devices.
BlackBerry is expecting an adjusted net loss — before factoring in a $950 million pre-tax charge against inventory and supply commitments, primarily attributable to BlackBerry Z10 devices — in a range between $250 million and $265 million, or between 47 cents and 51 cents per diluted share, which compares against the average analyst estimate of a loss of 15 cents per share. Including the inventory charge, net loss is expected to fall in a range between $1.81 and $1.90 per share.