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BlackBerry Plummets 24% on Earnings; Nike Loses Footing; Accenture Falters

Dan Berman
Hot Stock Minute
BlackBerry Plummets 24% on Earnings; Nike Loses Footing; Accenture Falters

BlackBerry (BBRY) is down more than 20% this morning after coming out with earnings. Here's why: the company lost 13-cents a share for the quarter when estimates were for a profit of 6-cents. Revenue was about $3.1 billion, significantly lower than the consensus of $3.36 billion. Phone shipments were up 13% from the prior quarter to 6.8 million but that was less than expected. Service revenues were down a surprising 20%. We should note the loss of 13-cents a share is still a vast improvement over the prior quarter when they were 37-cents a share. Prior to this morning, shares of BlackBerry are up 23% this year, so they're just about erasing all gains.

Next is Nike (NKE), which says unchanged here but has been trading more than 2%. The company posted quarterly earnings of 76-cents a share after yesterday's closing bell. That beat expectations by 2-cents and also reflects higher than expected revenue. It's also a 22% jump over last year. So why is the stock getting tripped-up? The company warns of a decrease in sales from China. At the same time it looks like gross margins will be flat. Shares of Nike are up 20% so far this year, largely on a spike around the time of its last report. They hit an all-time high in May of more than $66 a share.

Now we look at a company with close ties to Nike: Finish Line (FINL), which is reporting earnings this morning. The company beat when you exclude items posting earnings of 20-cents a share when expectations were for 16-cents. Revenues also topped forecasts. Sales were up 10% from a year ago. Finish Line is citing improved sales in running items and continued strength in basketball ones. Shares of Finish Line hit their 52-week high back in September. They're currently up about 13% over the past year.

Finally, there's Accenture (ACN) which has been down nearly 7% after reporting earnings yesterday. The company says it made $1.14 a share beating estimates by a penny, but it came up short on revenue. Up until now, the stock had risen 16% year-to-date. It has been up 41% over the last year, and like so many other stocks hit a high on May 22nd.