Raymond James analyst Steven Li (Market Perform):
"We maintain our Market Perform rating. Near-term, financial trends at BlackBerry are likely improving given substantial sell-in of Z10, Q10, and Q5 devices globally creating potential for reported revenue and EPS to be better than some fear. However, we remain more cautious longer term given the uncertain level of decline in the Services revenue stream, and the lack of positive sustained sell through data on BB10 devices to date."
Societe Geneale analyst Andy Perkins (Buy, $17 PT) :
"We are forecasting Z10 sales to be in excess of 4m handsets (1m previous quarter) with Q10 sales just under 1m units. We have little sales evidence for Blackberry 7 models, which suggests that volumes may have fallen sharply. We have found some supporting evidence for RIM's improving situation in analysis by Kantar and gs.statcounter.com. Interestingly, this evidence is stronger in the UK, one of the first markets where the Z10 and Q10 handsets were launched. So our base case scenario now assumes that the new handset sales have been faster than we previously assumed. We have increased this quarter's forecasts, with lower sales of older handsets (ASP $200) and higher sales of the new Z10 (ASP $500) and Q10 (ASP $550) models. This boosts our sales to $3.7bn (from $2.7bn) and increases our EPS for the quarter from $0.00 to $0.06. Longer term, we have boosted our handset sales assumptions, now going for almost 23m BB10 units this year (previously 16m) and this increases our EPS by 20% to $0.85 from $0.71 previously."Shares of Blackberry were lower in Thursday trading, off 1.07% to $14.75. -- Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia
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