WATERLOO: BlackBerry (BBRY) has a market capitalization of $4.5 billion. Its YTD (year-to-date) price movement was stable in 2015.
After its fiscal 3Q16 earnings report, BBRY rose 10.4% to close at $8.61 per share as of December 18, 2015. The stock’s price movements on a weekly, monthly, and YTD basis are 12.1%, 12.8%, and -21.6%, respectively.
Technically, the stock has broken the support of all of its moving averages throughout 2015. Currently, BBRY is trading 10.7% above its 20-day moving average, 14.2% above its 50-day moving average, and 3.1% above its 200-day moving average.
The PowerShares FTSE RAFE Developed Markets ex-US ETF (PXF) invests 0.13% of its holdings in BlackBerry. The ETF tracks a fundamentally weighted index of 1000 of the biggest companies in developed markets outside the United States based on fundamental measures. The YTD price movement of PXF is -5.6% as of December 17, 2015.
Performance of BlackBerry in fiscal 3Q16
BlackBerry reported fiscal 3Q16 revenue of $548.0 million, a fall of 30.9% when compared to its net revenue of $793.0 million in fiscal 3Q15. The company’s cost of sales as a percentage of revenue rose by 19.6%, and its gross profit margin fell by 16.6% in fiscal 3Q16, compared to the prior year’s period.
BlackBerry’s net income and earnings per share (or EPS) rose to -$89.0 million and -$0.17, respectively, in fiscal 3Q16, compared to its net income and EPS of -$148.0 million and -$0.28, respectively, in fiscal 3Q15. It reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $114.0 million in fiscal 3Q16.
Meanwhile, the company’s cash and cash equivalents and short-term investments fell by 22.4% and 25.3%, respectively, on a quarterly basis in fiscal 3Q16. BBRY’s current ratio fell to 2.7, and its debt-to-equity ratio rose to 0.99 in fiscal 3Q16. Its current and debt-to-equity ratios were 4.0 and 0.93, respectively, in fiscal 2Q16.
BlackBerry has completed its acquisitions of AtHoc and Good Technology.
The company has launched PRIV, the only smartphone that combines BlackBerry-level security with the Google Play app store’s 1.6 million apps. Also, it has confirmed plans to release OS (operating system) version 10.3.3 on BlackBerry 10 to support NIAP (National Information Assurance Partnership) certification.
