BlackBerry's (BBRY) Turnaround Continues Taking Shape in Q4 - Cowen

Cowen and Company is out with early commentary on BlackBerry (Nasdaq: BBRY) following the company's Q4 report, which was out ahead of the opening bell Friday.

Analyst Timothy Arcuri noted that BlackBerry's Q4 results were mixed; revenue of $976 million and adjusted loss was $.08 per share, versus the firm's estimates calling for revenue of $1.13 billion and loss of $.55 per share. The company recognized hardware revenue on just ~1.3 million smartphones during the quarter, although channel inventory declined ~30% q/q on quarterly sellthrough of ~3.4 million (including shipments made and recognized in previous quarters). FQ4:14 smartphone sell-through consisted of ~67% BlackBerry 7 devices (2.3 million) and ~33% BB10 devices (1.1 million), the analyst noted.

Bottom line: New CEO Chen continues to deliver tangible results as he leads the company's multi-quarter transition from a hardware-centric OEM to a resurgent Enterprise Mobility & Security play. The ability to meaningfully narrow BBRY's losses via cost management while shoring up cash flow for more of the daunting parts of the strategic transition that lie ahead should resonate with investors.

Cowen has BlackBerry at Market Perform with a price target of $7.50.

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

BlackBerry closed at $9.05 yesterday.

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