BlackBerry Earnings: What To Expect?

• Shares of BlackBerry Ltd BBRY were down more than 3.3 percent on Thursday , ahead of the announcement of the company’s third quarter results Friday morning.
• According to Estimize, the Street is modeling a huge decline on earnings and revenue.
• While the crowd is slightly less pessimistic, its estimates are also pretty bearish.

According to Estimize, the Street is expecting the smid cap provider of mobile communications and services to deliver a consensus net loss of $(0.15) per share on revenue of $485.21 million, while the crowd is projecting a net loss of $(0.13) per share on revenue of $491.49 million.

The Street’s estimates imply a very steep decline from the earnings of $0.01 per share on revenue of $793 million reported a year ago, and a slight fall from last quarter's net loss of ($0.13) per share on revenue of $491 million.

It should be noted from the chart above that Blackberry, which had tended to beat estimates in the past, has missed expectations in the last two quarters.

Other Things To Note

Last Monday, RBC Capital Markets analyst Mark Sue reiterated a Sector Perform rating on the company, with a price target of $8, noting that the Priv launch and the acquisition of Good Technology Corp GDTC mark “the furthest progress” BlackBerry has made to date in its transition to a software-only business.

On Thursday, Credit Suisse’s Kulbinder Garcha reiterated an Underperform rating and $6 price target, arguing that the company “faces inherent challenges in turning around its services and hardware business and may be forced to close them.”

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.