BlackBerry (BBRY) Z10 Sales Slowing, Q10 Doing Better; Results Poised to Beat the Street - Jefferies
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Rating Summary:
4 Buy, 31 Hold, 12 Sell
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Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
4 Buy, 31 Hold, 12 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Jefferies analyst Peter Misek weighed in on BlackBerry (NASDAQ: BBRY) Friday after his latest round of checks.
Misek noted globally, Z10 sales are slowing but Q10 is doing better than expected.
"Z10 has slowed in consumer markets but some businesses still evaluating," he notes. "Build plans increased likely due to Q5 and possibly from greater than expected global Q10 demand. We believe Street expectations for BB10 units in the May and Aug Q are ~3M and 3M+, respectively."
The analyst noted modest initial Q10 demand in the U.S. at T-Mobile with pockets of strength in certain geographies.
He sees BlackBerry beating Street estimates when they report quarter results on June 28, 2013. He notes: "We expect 3M+ BB10 units in the May Q, Street is ~3M. Street expects 3M+ for Aug Q, but we believe it may be materially higher. We believe BB7 sales decelerating more than expected; however, this will be EPS positive as BBRY loses money on each BB7 device according to our analysis. We believe sub losses will be in line with guidance (6% to 9% or 3M to 5M)."
The free BBM app for Android and iOS could strengthen ecosystem, Misek notes. "We see some possibility that BBRY could be a viable competitor to highly-valued WhatsApp," he said.
BlackBerry is also making moves to solidify its relevance as the 3rd ecosystem. "In our Feb survey, 63% of survey participants were unsure about who would be the 3rd ecosystem behind iOS and Android. In our current survey, 43% believe it is BBRY and 48% believe it is MSFT," he said.
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 $13.71 yesterday.
Misek noted globally, Z10 sales are slowing but Q10 is doing better than expected.
"Z10 has slowed in consumer markets but some businesses still evaluating," he notes. "Build plans increased likely due to Q5 and possibly from greater than expected global Q10 demand. We believe Street expectations for BB10 units in the May and Aug Q are ~3M and 3M+, respectively."
The analyst noted modest initial Q10 demand in the U.S. at T-Mobile with pockets of strength in certain geographies.
He sees BlackBerry beating Street estimates when they report quarter results on June 28, 2013. He notes: "We expect 3M+ BB10 units in the May Q, Street is ~3M. Street expects 3M+ for Aug Q, but we believe it may be materially higher. We believe BB7 sales decelerating more than expected; however, this will be EPS positive as BBRY loses money on each BB7 device according to our analysis. We believe sub losses will be in line with guidance (6% to 9% or 3M to 5M)."
The free BBM app for Android and iOS could strengthen ecosystem, Misek notes. "We see some possibility that BBRY could be a viable competitor to highly-valued WhatsApp," he said.
BlackBerry is also making moves to solidify its relevance as the 3rd ecosystem. "In our Feb survey, 63% of survey participants were unsure about who would be the 3rd ecosystem behind iOS and Android. In our current survey, 43% believe it is BBRY and 48% believe it is MSFT," he said.
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 $13.71 yesterday.
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