- Jefferies' Peter Misek, one of the more fervent BlackBerry (BBRY -1%) bulls out there (previous), says checks indicate BB10 build order plans were cut to 1M from 2M+ in July, and that plans have been cut by at least another 10% in August.
- BMO and Pac Crest have reported of rising BB10 channel inventories in the past.
- Misek: "We believe the build plan cut indicates sell-through is tracking well below [the Street's Aug. quarter] $3.1B revenue estimate." He adds Canadian store checks point to "a slow start" for the Q5, and price cuts for the Q10.
- He's lowering his Aug. quarter (FQ2) total and BB10 phone shipment estimates to 5M and 2M (FQ1 shipments were 6.8M and ~2.7M), and his revenue estimate to just $2.3B.
- Nonetheless, Misek is reiterating a Buy on acquisition/LBO hopes. His PT has been lowered to $18 from $21, but that's still 74% above current levels.
- Separately, evleaks reports Verizon is set to begin selling the Z10 for free with a 2-year contract. The phone currently goes for a subsidized $100.
Misek cuts BlackBerry estimates, cites build order cuts
Aug 19 2013, 10:49 ET