Blackberry (O:BBRY) - Information Technology - Computers & Peripherals | Reports December 18, before market open
Key Takeaways
- The Estimize consensus calls for FQ3 2016 revenue of $491.63, slightly higher than Wall Street’s estimate for $485.21 million.
- BlackBerry has struggled to compete with popular handsets and now controls less than 1% of the smartphone market share.
- Despite the success of BlackBerry Priv, the outlook for the company remains bleak.
Leading into BlackBerry’s FQ3 2016 earnings report, the company recently released its latest device, the BlackBerry Priv. With a new device transitioned to an Android operating system, BlackBerry believes it has the crucial elements in place to return to the growth it once had. In its short shelf life, massive demand for the Priv has caused share prices to jump. That said, the smartphone company has lost a majority of its market share to Apple (O:AAPL) and Samsung (OTC:SSNLF) over the past few years. BlackBerry has struggled with a weakened portfolio of devices and lack of mainstream acceptance, resulting in continuously declining revenue streams expected to carry throughout fiscal 2016. The Estimize consensus calls for Q3 revenue of $491.63 million and EPS of -$0.13, slightly higher than Wall Street’s revenue estimate of $485.21 million and EPS of -$0.15. Compared to Q3 2015, this represents an expected year-over-year decline in revenue and EPS of 38% and 1410% , respectively.
With current and past finances in poor shape, BlackBerry is taking various steps to turn around their misfortunes. The launch of BlackBerry Priv, has come with compelling reviews, strong initial sales and high praise from analysts. The Priv is the first of BlackBerry’s handsets integrated with Android software, while still aimed at enterprise users. Despite BlackBerry Priv’s initial success, their hardware and software still lags behind popular Apple and Samsung products in capability and price. With little room for error, BlackBerry’s smartphone division must stop being a burden on the company for there to be any hope going into the new year.
