The moment of splendor for BlackBerry is already behind. All kind of efforts to restore its former glory have not brought satisfactory results. Market expectations regarding the publication of the company financial report for the past quarter were pessimistic, but the producer of business mobile phones surprised Wall Street investors positively.


The canadian company at the end of yesterday’s Wall Street session published the report for the period from June to August. Presented results look weak at first glance. Revenue has fallen by 32% y /y to 334 million USD. The assumed result supposed to be 394 million USD. Moreover, the net loss has amounted to $ 372 million, while in the same period last year, BlackBerry has generated a profit of $ 52 million. However, adjusted EPS reached the threshold of profitability. Also, if you look at the revenues from activities related to software development and the provision of services, you can see that they increased more than double and amounted 156 million US dollars ultimately. This means that the company is able to diversify their sources of income.
BlackBerry is losing the fight on the smartphone’s market with Apple and Samsung. Therefore the company is forced to change their core business. Becouse of that the investors reacted with the great optimism. What’s more, the company announced that it will move away from developing their own devices, including mobile phones. It will be transferred to its partners. After the session BlackBerry gained more than 5%. Therefore, today we will probably see more then $ 8.27. In this case, the baseline scenario would be a move toward to the peaks of the last year, close to 9.45 USD. However, there is possibility to re-test the level of 8.27 USD.

0mqdgygkemwzrjuaacg_1475137214683_bbry

 

 

 

 

 

written by Michael Dabrowski

Error, group does not exist! Check your syntax! (ID: 3)