The Successful Investor Hotline – Friday, June 28, 2013

Article Excerpt

BLACKBERRY INC., $11.08, Toronto symbol BB, fell 26% on Friday after the company reported lower-than-expected earnings. In its 2014 first quarter, which ended June 1, 2013, BlackBerry shipped 6.8 million smartphones, down 12.8% from 7.8 million a year ago. The latest quarter’s shipments included 2.7 million of its new, higher-priced BlackBerry 10 models, which fell short of the consensus estimate of 3.3 million. BlackBerry also lost $84 million, or $0.16 a share (all amounts except share price in U.S. dollars). Still, that’s a big improvement over the $510 million, or $0.97 a share, it lost a year earlier. If you disregard unusual costs, including a charge related to foreign currency controls in Venezuela, BlackBerry would have lost $0.13 a share. That’s well below the consensus forecast of a $0.04-a-share profit. Revenue rose 9.4%, to $3.1 billion from $2.8 billion. Higher sales in Europe and Asia offset declines in North America and Latin America. The company’s balance sheet remains sound: it has no debt and…