We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in the Cards for BlackBerry (BBRY) in Q1 Earnings?
Read MoreHide Full Article
BlackBerry Limited is scheduled to report first-quarter fiscal 2017 operating results on Jun 23, 2016 before the market opens.
Last quarter, the company’s loss was narrower than the Zacks Consensus Estimate, which resulted in a positive earnings surprise of 25.00%. The company has reported positive surprises in two of the last four quarters. With the shift in the company’s business from hardware to software products, it remains to be seen how the company has performed this time around.
Factors Likely to Influence this Quarter
BlackBerry’s software business continues to be the biggest attraction for investors. The company has been rapidly expanding to build a strong brand name in this category, which is expected to become its core business going forward. To this end, BlackBerry has increased investments in the Enterprise Mobility Management space.
BlackBerry remains on track to improve its BES12 platform, which is interoperable with Apple Inc.’s (AAPL - Free Report) iOS and Alphabet Inc.’s (GOOGL - Free Report) Android. Also, it has increased focus on the Internet of Things (“IoT”) platform. These apart, new innovations by BlackBerry’s QNX Software Systems subsidiary continue to improve its offerings in the automotive sector. The company’s consistent efforts in the software and services segment raise optimism for earnings growth.
Given that BlackBerry started off with predominantly being a handset manufacturer, it attempted to re-establish itself with the launch of Android-based handset – PRIV. However, stiff competition from Android and Apple platforms and a late market entry resulted in lower-than-expected PRIV sales. In additition, the company has started shipping the fully touch screen Z3 smartphones in order to boost its hardware sales figures. However, the improvement remains to be seen.
Thus, challenges such as stiff competition in smartphone sales, contract termination with T-mobile, pressures related to a changing business model, and general macroeconomic risks could affect the company’s performance.
Our proven model does not conclusively show that BlackBerry is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: BlackBerry has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 10 cents each.
Zacks Rank: BlackBerry carries a Zacks Rank #3 which increases the predictive power of ESP. However, a 0.00% ESP makes surprise prediction difficult.
Note that stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Stock to Consider
Below is a stock which investors could consider as our model shows it has the right combination of elements to post an earnings beat this quarter:
Sprint Corporation (S - Free Report) has an Earnings ESP of +71.43% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
What's in the Cards for BlackBerry (BBRY) in Q1 Earnings?
BlackBerry Limited is scheduled to report first-quarter fiscal 2017 operating results on Jun 23, 2016 before the market opens.
Last quarter, the company’s loss was narrower than the Zacks Consensus Estimate, which resulted in a positive earnings surprise of 25.00%. The company has reported positive surprises in two of the last four quarters. With the shift in the company’s business from hardware to software products, it remains to be seen how the company has performed this time around.
Factors Likely to Influence this Quarter
BlackBerry’s software business continues to be the biggest attraction for investors. The company has been rapidly expanding to build a strong brand name in this category, which is expected to become its core business going forward. To this end, BlackBerry has increased investments in the Enterprise Mobility Management space.
BlackBerry remains on track to improve its BES12 platform, which is interoperable with Apple Inc.’s (AAPL - Free Report) iOS and Alphabet Inc.’s (GOOGL - Free Report) Android. Also, it has increased focus on the Internet of Things (“IoT”) platform. These apart, new innovations by BlackBerry’s QNX Software Systems subsidiary continue to improve its offerings in the automotive sector. The company’s consistent efforts in the software and services segment raise optimism for earnings growth.
Given that BlackBerry started off with predominantly being a handset manufacturer, it attempted to re-establish itself with the launch of Android-based handset – PRIV. However, stiff competition from Android and Apple platforms and a late market entry resulted in lower-than-expected PRIV sales. In additition, the company has started shipping the fully touch screen Z3 smartphones in order to boost its hardware sales figures. However, the improvement remains to be seen.
Thus, challenges such as stiff competition in smartphone sales, contract termination with T-mobile, pressures related to a changing business model, and general macroeconomic risks could affect the company’s performance.
BLACKBERRY LTD Price and EPS Surprise
BLACKBERRY LTD Price and EPS Surprise | BLACKBERRY LTD Quote
Earnings Whispers
Our proven model does not conclusively show that BlackBerry is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: BlackBerry has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 10 cents each.
Zacks Rank: BlackBerry carries a Zacks Rank #3 which increases the predictive power of ESP. However, a 0.00% ESP makes surprise prediction difficult.
Note that stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Stock to Consider
Below is a stock which investors could consider as our model shows it has the right combination of elements to post an earnings beat this quarter:
Sprint Corporation (S - Free Report) has an Earnings ESP of +71.43% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>