NEW YORK (TheStreet) -- BlackBerry (BBRY) is losing less money -- and a lot more business. And that, say investors on StockTwits.com, is progress capable of returning the company to profitability. Though it's not enough to show the beleaguered smart phone company's turnaround plan has taken hold.
Friday morning, BlackBerry reported quarterly earnings that beat Wall Street consensus estimates for earnings per share, but badly missed sales expectations. Blackberry posted a loss of 8 cents per share, excluding some items, on $976 million in revenue. Wall Street analysts had expected a 57-cent EPS loss on $1.11 billion in sales, according to estimates on the Analyst Ratings Network. Sales fell 64% from the same period a year ago.The stock rose more than 6% in premarket trading, though it shed much of those gains during the conference call leading up to the opening bell. The stock opened 2.76% higher. Some cashtaggers expressed surprise that the gains didn't hold through the open. The company can't be expected, they argued, to stabilize sales as it slashes expenses.
$BBRY Do you really expect BB to improve revenues in a single quarter?! restructuring takes time and judge in the next few quarters -- Khaled (@TwitsTrader) Mar. 28 at 08:18 AMSentiment on the stock is 89% bullish, according to StockTwits' analytics. Traders see positives in BlackBerry's ruthless cost reductions, allowing it to promise break-even results by the end of fiscal 2015. "BlackBerry is on sounder financial footing today with a path to return to growth and profitability," said CEO John Chen in a statement. "We have significantly streamlined operations, allowing us to reach our expense reduction target one quarter ahead of schedule." The company has plenty of cash to absorb more losses while Chen continues to implement the company's turnaround plan. Blackberry said it has $2.7 billion in cash, cash equivalents, short-term and long-term investments as of March 1.
$BBRY long term outlook still remains bullish though. -- StandpointCapitalLLC (@StandpointCapitalLLC) Mar. 28 at 09:00 AM
@vanhalenboss I agree...still a long slog ahead, and competition is not standing still. $BBRY -- Syntec Ventures (@SyntecVentures) Mar. 28 at 08:17 AMTraders also see bullish signs in the growth of BlackBerry's messenger application.
$BBRY BBM crossed 100M users , actual 113M :)) -- Wilson (@LittleRedDot) Mar. 28 at 08:32 AMMuch has been made of the importance of messaging applications since Facebook (FB) purchased messaging application service WhatsApp for $19 Billion in February. At the time of Facebook's mostly stock purchase of WhatsApp, the company had 450 million users. Some traders argue that the simple math of dividing the purchase price by the user base puts a value of $42 on each messenger user. Applying that worth to BlackBerry's 113 million messenger users would value BlackBerry Messenger alone at $4.7 billion. The entire company has a market cap of $4.69 billion.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV