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Can BlackBerry (BBRY) Spring a Surprise in Q4 Earnings?
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Canadian handset manufacturer BlackBerry Limited is slated to release fourth-quarter fiscal 2017 results on Mar 31, before the market opens.
In the last quarter, the company reported a loss of 1 cent per share, narrower than the Zacks Consensus Estimate of a loss of 4 cents. Meanwhile, total revenue of $301 million declined 47.3% year over year. The top line missed the Zacks Consensus Estimate of $331 million. Quarterly operating loss came in at $114 million.
Earnings Whispers
Our quantitative model does not show conclusively that BlackBerry is likely to beat earnings in the fiscal fourth quarter. According to our proven model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings surprise. However, that is not the case as highlighted below.
Zacks ESP: The Earnings ESP for BlackBerry is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 4 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: BlackBerry carries a Zacks Rank #3 which increases the predictive power of ESP.However, the company’s 0.00% ESP complicates our surprise prediction.
Please note that Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The company expects to sustain a strong cash position, generate positive free cash flow and allot additional sources in the go-to-market and product development lines to attain positive adjusted EBITDA in fiscal 2017. The company expects to generate 30% revenue growth in software and services this fiscal.
The company has raised its earnings per share (EPS) outlook for fiscal 2017 compared with the previous outlook in the range of breakeven results to a loss of 5 cents. The company also expects fourth quarter non-GAAP EPS and cash-flow to be breakeven.
The company recently announced a deal with Chinese handset manufacturer TCL Communications to manufacture BlackBerry handsets for certain countries. This move comes with an enhanced focus on Software and licensing service amid increasing competition from peers such as Apple Inc. (AAPL - Free Report) and Nokia Inc. (NOK - Free Report) . BlackBerry also recently launched DTEK60 by TCL which runs on Alphabet’s Android platform.
Stock to Consider
Investors interested in the broader computer and technology space may consider ADTRAN, Inc. (ADTN - Free Report) as our model shows it possesses the right combination of elements to post an earnings beat in its next release.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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Can BlackBerry (BBRY) Spring a Surprise in Q4 Earnings?
Canadian handset manufacturer BlackBerry Limited is slated to release fourth-quarter fiscal 2017 results on Mar 31, before the market opens.
In the last quarter, the company reported a loss of 1 cent per share, narrower than the Zacks Consensus Estimate of a loss of 4 cents. Meanwhile, total revenue of $301 million declined 47.3% year over year. The top line missed the Zacks Consensus Estimate of $331 million. Quarterly operating loss came in at $114 million.
Earnings Whispers
Our quantitative model does not show conclusively that BlackBerry is likely to beat earnings in the fiscal fourth quarter. According to our proven model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings surprise. However, that is not the case as highlighted below.
Zacks ESP: The Earnings ESP for BlackBerry is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 4 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: BlackBerry carries a Zacks Rank #3 which increases the predictive power of ESP.However, the company’s 0.00% ESP complicates our surprise prediction.
Please note that Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
BlackBerry Limited Price and EPS Surprise
BlackBerry Limited Price and EPS Surprise | BlackBerry Limited Quote
Factors Likely at Play
The company expects to sustain a strong cash position, generate positive free cash flow and allot additional sources in the go-to-market and product development lines to attain positive adjusted EBITDA in fiscal 2017. The company expects to generate 30% revenue growth in software and services this fiscal.
The company has raised its earnings per share (EPS) outlook for fiscal 2017 compared with the previous outlook in the range of breakeven results to a loss of 5 cents. The company also expects fourth quarter non-GAAP EPS and cash-flow to be breakeven.
The company recently announced a deal with Chinese handset manufacturer TCL Communications to manufacture BlackBerry handsets for certain countries. This move comes with an enhanced focus on Software and licensing service amid increasing competition from peers such as Apple Inc. (AAPL - Free Report) and Nokia Inc. (NOK - Free Report) . BlackBerry also recently launched DTEK60 by TCL which runs on Alphabet’s Android platform.
Stock to Consider
Investors interested in the broader computer and technology space may consider ADTRAN, Inc. (ADTN - Free Report) as our model shows it possesses the right combination of elements to post an earnings beat in its next release.
ADTRAN has an Earnings ESP of +23.08% and a Zacks Rank #3. The company beat the Zacks Consensus Estimate in each of the last four quarters, with an average positive surprise of 35.82%.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging
phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>