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BlackBerry (BBRY) Dips Ahead Of Earnings, Should You Buy?
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Shares of BlackBerry Ltd fell about 1.7% in morning trading Wednesday. Investors are seemingly unsure about the company’s performance heading into its first-quarter earnings announcement on Thursday morning.
Over the past few years, BlackBerry’s share of the handset market has nearly disappeared. In response, the company has shifted its focus to software. One of the key factors in BlackBerry’s first-quarter earnings report will be how well the software business is paying off for the company.
BlackBerry has been steadily improving its BES12 platform, which is compatible with Apple Inc.’s (AAPL - Free Report) iOS and Alphabet Inc.’s (GOOGL - Free Report) Android. BlackBerry has also invested heavily in the Internet of Things and its QNX Software Systems subsidiary, which reaches out to the automotive industry as well.
While BlackBerry has shifted its focus to software, the company still releases handsets. One of its latest major releases, the Android-based BlackBerry PRIV, was hailed by critics for its design and power. However, the smartphone market is extremely competitive and sales of the PRIV were lower than expected.
Heading into the report, we have not seen any earnings estimate revision activity for BlackBerry. Therefore, the stock currently has an Earnings ESP of 0.00%. BlackBerry also currently has a Zacks Rank #3(Hold).
Typically we recommend that investors stick to stocks with a Zacks Rank #2 (Buy) or better, along with a positive Earnings ESP ahead of earnings. Because BlackBerry has neither of those, it is difficult to predict whether the company will have a positive surprise this earning season.
Today’s price action seems to be coming from the underlying uncertainty surrounding BlackBerry. All we know for sure is that PRIV sales failed to impress. It was almost certainly a good idea for the company to shift its focus away from handsets, but we simply don’t know how well its chosen software business is working right now.
BlackBerry could be a stock that still needs some time to really figure out its future. This will probably keep many investors away from it before this quarter’s report.
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BlackBerry (BBRY) Dips Ahead Of Earnings, Should You Buy?
Shares of BlackBerry Ltd fell about 1.7% in morning trading Wednesday. Investors are seemingly unsure about the company’s performance heading into its first-quarter earnings announcement on Thursday morning.
Over the past few years, BlackBerry’s share of the handset market has nearly disappeared. In response, the company has shifted its focus to software. One of the key factors in BlackBerry’s first-quarter earnings report will be how well the software business is paying off for the company.
BlackBerry has been steadily improving its BES12 platform, which is compatible with Apple Inc.’s (AAPL - Free Report) iOS and Alphabet Inc.’s (GOOGL - Free Report) Android. BlackBerry has also invested heavily in the Internet of Things and its QNX Software Systems subsidiary, which reaches out to the automotive industry as well.
While BlackBerry has shifted its focus to software, the company still releases handsets. One of its latest major releases, the Android-based BlackBerry PRIV, was hailed by critics for its design and power. However, the smartphone market is extremely competitive and sales of the PRIV were lower than expected.
Heading into the report, we have not seen any earnings estimate revision activity for BlackBerry. Therefore, the stock currently has an Earnings ESP of 0.00%. BlackBerry also currently has a Zacks Rank #3(Hold).
Typically we recommend that investors stick to stocks with a Zacks Rank #2 (Buy) or better, along with a positive Earnings ESP ahead of earnings. Because BlackBerry has neither of those, it is difficult to predict whether the company will have a positive surprise this earning season.
Today’s price action seems to be coming from the underlying uncertainty surrounding BlackBerry. All we know for sure is that PRIV sales failed to impress. It was almost certainly a good idea for the company to shift its focus away from handsets, but we simply don’t know how well its chosen software business is working right now.
BlackBerry could be a stock that still needs some time to really figure out its future. This will probably keep many investors away from it before this quarter’s report.
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 >>