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Sunday 30 March 2014

Blackberry's business: Earnings Release shows a struggling enterprise

Blackberry Ltd. (NASDAQ:BBRY) had an earnings release last Friday, for the fourth quarter of the 2014 Fiscal Year. The iBusiness Times wrote before the release, about Richard Tse, an analyst from Comark Securities and his predictions on Blackberry's earnings. Tse claimed that Blackberry's revenue would drop to $0.9 Billion dollars after a consensus of $1.1 Billion. And thus, the multinational has recorded a revenue of $976 Million. The enterprise suffered heavy damage when the results for the second quarter of this fiscal year came out, when Blackberry recorded a fall in revenue of around $1.5 billion.
Blackberry's Revenue has been falling consistently this Fiscal Year (2014)
After a consensus of -$0.56 EPS, Blackberry has actually recorded an EPS of -$0.80. Even though this is much better than last quarter's -$8.37 it is still quite a bit higher than the consensus. After the earnings release, the share has been dropping relentlessly, and CEO John Chen needs to tighten up the multinational's game plan. After the share was upgraded by Comark Securities from Market Perform to Speculative Buy, the shares were flying up, however the poor report has brought them right back down again. 
Ever since the earnings report was released, the share price has dropped by nearly $1
https://www.google.com/finance?cid=663276

Blackberry's market is largely that of working individual's with standard office jobs. This is because of the features offered on their cell phones, which allow working people to write, respond to and receive emails easily with their QWERTY keyboard or slick touch motion. The Blackberry cell phones also offer an easier way to plan your day on a daybook or calendar. Because of this, Blackberry needs to find a way to appeal to the office working and business individuals. From the recent release of BBM (Blackberry Messenger), Blackberry has started to poke into the youth demographic, however Blackberry must find a firm foothold in its previous area, before diving into new ones. 
Blackberry must fully explore what it is good at, before departing on new ventures.

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