BlackBerry Ltd (NASDAQ:BBRY) Information Technology - Computers & Peripherals | Reports April 1, Before Market Opens
Key Takeaways
- The Estimize consensus is calling for EPS of -$0.06 on $571.81 million in revenue, 4 cents higher than Wall Street on the bottom line and $12 million more in sales
- Blackberry’s two newest products, the Blackberry (TO:BB) Priv and BB10, have performed poorly
- Blackberry has suffered lately from a declining handheld business, stiff competition and weak economic conditions
- What are you expecting for BBRY?
On the verge of becoming irrelevant, Blackberry made news recently with the launch of the Blackberry Priv, its newest handheld device, and BB10, the next iteration of its operating system. However, this failed to make the splash that Blackberry had hoped and expected. It comes as no surprise that the company has missed earnings in 2 of the past 3 quarters. Based on Blackberry’s poor track record, expectations are low coming into its fourth quarter 2016 earnings report.
The Estimize consensus is calling for EPS of -$0.06 on $571.81 million in revenue, 4 cents higher than Wall Street on the bottom line and $12 million more in sales. However, our Select Consensus, a weighted average of the historically most accurate analysts and recent estimates, is expecting $567.28 million in revenue, slightly less than the Estimize mean. Blackberry is seeing heavy downward revisions lately, with earnings dropping 90% in the past 3 months. Compared to the year prior, this projects a 235% decline in profitability while sales are predicted to decline 13%.
Lately it seems like Blackberry hasn’t been able to do anything right. The tech company has suffered from a declining handset business, stiff competition from Apple (NASDAQ:AAPL) and Samsung (KS:005930), and weak economic conditions. Sluggish demand for its newest products, the Blackberry Priv and BB10, have come as a surprise to the company. The poor start has led Blackberry to abandon its native operating system in favor of Android systems.
Blackberry is also expanding beyond hardware into services and software, which has seen a massive YoY jump. The acquisition of mobile security platform, Good Technology, has fared remarkably well, helping sodify Blackberry’s position in security services. Still, its strategy to expand via acquisitions and failure to make necessary expense cuts may further deteriorate the company’s cash position.
Do you think BBRY can beat estimates?