BlackBerry Limited (BB)

[JustForFun7]

BLackberry - 650 million dollar profit?

http://www.thegadgetmasters.com/2013/06/03/why-blackberry-could-announce-over-650-million-in-net-profit-on-june-28-2013/

In the latest quarter, BlackBerry reported a net profit despite only selling the Z10 for one month in the UK and Canada. On June 28th, BlackBerry is reporting earnings for the latest quarter ending June 1st. With the Z10 being available for the entire quarter in dozens of countries, plus the Q10 available for one month in UK and Canada, BlackBerry should report a much higher profit than the $0.22 per share that it reported last quarter

BlackBerry Could Report $654 Million in Profit and EPS of $1.25


Screenshot of Excel spreadsheet sent in by a reader who works in financial services.

In fact, based on a financial model that a reader has sent in, BlackBerry could announce a net profit of US$654 million on June 28. This would be $1.25 in EPS (earnings per share). A conservative annualized EPS would be $5, so a price target at 10 times forward P/E would be $50.

This model assumes sales of 7.4 million BB 10 smartphones in the quarter, gross margin of 40% (same as last quarter) and service revenue that declines 11.2% from Q4. It has already accounted for the 50% increase in marketing spending.

The guidance that BlackBerry gave for the quarter was break-even (earnings of $0.00 per share). Thus, a profit of $1.25 per share would be a blow-out quarter. In fact, one buy-side analyst I talked to believes BlackBerry could issue a positive profit warning before June 28.

JFF7