Shares in BlackBerry continue to fall after dismal quarterly earnings

WATERLOO, Ont. – Shares in BlackBerry (TSX:BB) dropped more than seven per cent Tuesday, just days after the smartphone-maker reported dismal earnings in its latest quarter.

BlackBerry were down 79 cents to $10.29 a share in mid-afternoon trading on the Toronto Stock Exchange. On Wall Street, company shares fell more than five per cent, or 55 cents, to US$9.74.

The Waterloo, Ont.-based company has been clobbered on the stock market since Friday, when it posted a first-quarter loss of U$84 million, or 16 cents per share, for the first three months ended June 1.

It was an improvement from a loss of $518 million or 99 cents per share a year ago, but still fell short of analysts estimates.

BlackBerry shares closed down 26 per cent after chief executive Thorsten Heins said that further losses were expected in the next quarter.

In an analyst note Monday, Kris Thompson of National Bank Financial continued to rate BlackBerry’s stock at “Underperform,” and said the company’s risk rating remained “Above Average.”

Thompson estimated that the stock will fall to US$8 per share.

“The company is likely not sustainable for long at this pace without additional significant rightsizing,” he wrote in the note.

Note to readers: This is a corrected story. An earlier version incorrectly stated the year-ago loss.