What To Expect From BlackBerry (BBRY) Stock In Q2 Earnings?

BlackBerry Limited (NASDAQ:BBRY) is slated to release second-quarter fiscal 2018 (ended Aug 31, 2018) results on Sep 28, before the market opens.

In the last quarter, the company reported earnings of 2 cents per share. The Zacks Consensus Estimate is pegged at breakeven. In fact, it has an impressive earnings history.

Factors Likely at Play

The company is expected to perform impressively in the second quarter of fiscal 2018, driven by its decision to end all internal hardware development and focus exclusively on software business.

The company expects its software business to either outperform or at least perform at par with the overall market in fiscal 2018. In fact, the company anticipates profitability (on an adjusted basis) and also expects to generate positive free cash flow in the same year.

Results in the quarter are likely to be benefitted by payments following the dispute settlement with the U.S. chipmaker Qualcomm (NASDAQ:QCOM) . Moreover, BlackBerry’s efforts to expand its product portfolio augur well and should boost results in the quarter.

In June 2017 , BlackBerry unveiled an innovative software – QNX Hypervisor 2.0 – for running complex computer systems on Internet-connected cars. The software will help in running complex computer systems in vehicles to make it more secure from hacking.

In August 2017, BlackBerry signed an agreement with Appdome, the first cloud hub for mobile app integration. The contract would allow codeless integration of secure voice, video and messaging functions. The deal with Ford (NYSE:F) , inked last year, aims to send some of its software developers to the car giant to help work on driverless car technology.

However, with increasing global exposure, BlackBerry faces the risk of adverse foreign exchange fluctuations. Adverse foreign currency movements might hurt results in the quarter.

A Well-Performing Stock

InterDigital, Inc. (NASDAQ:IDCC) sporting a Zacks Rank #1 (Strong Buy) is expected to perform well in its next earnings release. Like BlackBerry, this stock is also a part of the Computer and Technology sector. You can see the complete list of today’s Zacks #1 Rank stocks here.

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