BlackBerry Ltd. – (NASDAQ: BBRY)
BlackBerry stocks are up today as investors anticipate the company’s earnings report. Currently (2:36), BBRY is trading at $9.59 per share after gaining 0.74% so far today. While the gains are minimal compared to what we’ve seen from the stock over the past month, they show that there are still investors that have faith in hardware; but the big question is “Can BlackBerry minimize losses and move it’s way to profits?” On Friday before the bell, we’ll get a glimpse at progress as the company releases its earnings report.
What Analysts Expect From BlackBerry’s Earnings Report?
Unfortunately, the overall consensus is that we can expect to see expanded losses. According to InvestorPlace.com, we should see revenue coming in at around $801 million. If this was to be the case, that would be a drop of about 18% year over year. Sadly, they aren’t even the most bearish on the stock. As a matter of fact, RBC Capital Markets analyst Mark Sue is expecting the worst. According to his most recent report on BlackBerry, he’s expecting to see smartphone sales drop to 1.3 million units, a slew of missed targets with regard to revenue and EPS, and a quarterly revenue at $661. You can find more details here.
What I’m Expecting To See
While I still expect to see an expansion on losses in Friday’s report, I’m not expecting it to be as bad. While analysts have been bombarding BBRY with downgrades and lowered target prices, it think it’s important to remember the shift the company is going through. BlackBerry isn’t just a smartphone provider anymore. The company is slowly growing it’s share of the market in what is becoming known as the Internet of Things (IoT). With that said, I’m expected to see a revenue decline year over year around ten percent while BlackBerry continues its shift to become a more widely recognized brand outside of smartphones.
What Do You Think?
Do you think that expanded losses will be as bad as predicted on Friday? What is your outlook for BBRY long term? Let us know in the comments below!