Cowen Trims Estimates on BlackBerry (BBRY) Following Q4 Performance

Cowen and Company affirms BlackBerry (Nasdaq: BBRY) at Market Perform with a price target of $10 following

Analyst Bryan Prohn summarized: BBRY reported another substantial top-line miss in FQ4:15 as the Hardware segment's portfolio transition weighed on results. Revenue of $660 million (-17% Q/Q; -32% Y/Y) came in well below our $794 million and Street $778 million as the company recognized revenue on just 1.3 million smartphones and Hardware sales fell ~24% Q/Q to ~$274 million (~42% of revenue). Service revenue was roughly in-line at $309 million (~47% of revenue), while Software revenue registered a solid ~24% Q/Q increase, to $67 million (~10% of revenue). FQ4:15 non-GAAP EPS of $0.04 beat both our $(0.02) and Street $(0.04) on roughly in-line adjusted gross margins of 48.3% and a ~20% Q/Q decline in adjusted operating expenses. Net cash (ex-debentures) increased ~5% Q/Q, to $3.27B, while cash flow was again positive, at $76 million (versus $43 million in FQ3:15).

Estimate changes: FY16 revenue from $3.62 billion down to $3.35 billion while loss per share remains at $0.05.

For an analyst ratings summary and ratings history on BlackBerry click here. For more ratings news on BlackBerry click here.

BlackBerry closed at $8.80 yesterday.

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