BlackBerry (BBRY) Q4 Results Positive, But Don't Get Hopes Up - FBR
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Price: $11.57 --0%
Rating Summary:
4 Buy, 31 Hold, 12 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 31 Hold, 12 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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While FBR Capital was somewhat impressed with BlackBerry's (Nasdaq: BBRY) Q4 results and sees catalysts on the horizon they maintained an Underperform rating as they expect the company to struggle to generate a consistent operating profit. The firm's price target moves from $6.50 to $11.
On the results, analyst Scott Thompson notes: "F4Q13 earnings seemed to provide a glimpse of a company that is in the initial stages of stabilizing its business as revenues, subscriber losses, and device sales were all below consensus expectation, but gross margin and EPS topped estimates on strong cost controls and a favorable tax treatment due to R&D tax credits and NOLs.
The analyst came away from the call with the idea the the Z10 stockouts were more a result of managing the service base through BB7 versus BB10 sales than they were true production stockouts.
Thompson said the stock could react positively to catalysts including the launch of the Q10 QWERTY keyboard-equipped handset as soon as this week and the announcement of several new service offerings. He cautioned, "while operations and execution appear to be improving, we expect the company could struggle to generate a consistent operating profit."
For an analyst ratings summary and ratings history on BlackBerry click here. For more ratings news on BlackBerry click here.
Shares of BlackBerry closed at $14.45 yesterday.
On the results, analyst Scott Thompson notes: "F4Q13 earnings seemed to provide a glimpse of a company that is in the initial stages of stabilizing its business as revenues, subscriber losses, and device sales were all below consensus expectation, but gross margin and EPS topped estimates on strong cost controls and a favorable tax treatment due to R&D tax credits and NOLs.
The analyst came away from the call with the idea the the Z10 stockouts were more a result of managing the service base through BB7 versus BB10 sales than they were true production stockouts.
Thompson said the stock could react positively to catalysts including the launch of the Q10 QWERTY keyboard-equipped handset as soon as this week and the announcement of several new service offerings. He cautioned, "while operations and execution appear to be improving, we expect the company could struggle to generate a consistent operating profit."
For an analyst ratings summary and ratings history on BlackBerry click here. For more ratings news on BlackBerry click here.
Shares of BlackBerry closed at $14.45 yesterday.
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