BlackBerry's Q1 Earnings Due June 23: Expect Continued Turnaround Progress


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


BlackBerry Ltd (NASDAQ:BBRY) is scheduled to report its fiscal first-quarter results on June 23, and investors are expecting further updates to its

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ongoing turnarounds initiatives. Heading into the earnings report, Imperial Capital's Michael Kim maintains an In-Line rating on BlackBerry's stock with a price target boosted from $8.25 to $10.

Q1 Expectations

The analyst is expecting the company to demonstrate progress on its transition toward a software and services company with diminished headwinds from Services Access Fees and early ramp of hardware royalties.

BlackBerry is expected to report revenue of $248 million and an adjusted net loss per share of $0.01, the analyst stated. By comparison, consensus estimate is calling for BlackBerry to report revenue of $265 million and an adjusted EPS of $0.00.

Beyond Q1


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Meanwhile, BlackBerry's $940 million settlement award from QUALCOMM, Inc. (NASDAQ:QCOM) gives the company the necessary cash to accelerate its strategic expansion in areas such as connected cars, Internet of Things and embedded software, Kim added.

Yet despite expectations for continued momentum, Kim isn't recommending buying the stock for two reasons. First, investors should wait for higher growth inflection and adoption of the company's new solutions and at that point can become more constructive on the stock given higher visibility on growth initiatives.

Second, as it stands now, the stock is trading at a valuation that merely offers a balanced risk to reward profile.

Related Links:

Your Guide To Trading The Autonomous Vehicle Theme Citron's Andrew Left Hits The Airwaves To Explain His Bullish BlackBerry Stance


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: Analyst ColorShort SellersPreviewsReiterationAnalyst RatingsTechTrading IdeasAndrew LeftBlackberryBlackBerry SoftwareCitron ResearchConnected Carsimperial capitalInternet of ThingsMichael Kim