2 Action-Packed Days for BlackBerry
On Friday, BlackBerry released preliminary earnings results that were as grim as could be. The company expects to lose nearly $1 billion this quarter, primarily related to an inventory charge attributable to Z10 devices. It sold just 3.7 million smartphones during the quarter, in part because it was drawing down channel inventory.
BlackBerry will announce full results on Friday, and investors may get clarity on the remaining unknowns. It acknowledged that BlackBerry 10 device sell-through has been poor, but did not elaborate further. Any information on BlackBerry's subscriber base, which fell by 4 million to 72 million last quarter, will also be notable.
With today's news that a consortium led by Fairfax Financial has agreed to buy BlackBerry for $9 per share certainly changes the equation for investors. While the offer is on the table, investors will be focused on the sale. However, there are still a lot of hurdles that will need to be cleared, including financing, due diligence, and regulatory approvals, among other things.
In the following video, Erin Kennedy discusses BlackBerry's prospects with Evan Niu, CFA.
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The article 2 Action-Packed Days for BlackBerry originally appeared on Fool.com.Erin Kennedy and Evan Niu, CFA, have no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.