Thursday, March 30, 2017

What to Expect with BlackBerry’s Earnings?






On March 31, 2017, Friday, BlackBerry is expected to report its earnings for the fiscal Quarter concluding February of this year.

Before the opening bell, BBRY will report is F$Q17 earnings. Investors are waiting both tightly and nervously expecting that BlackBerry shows exceptional results after execution of its efforts. The results can turn into higher confidences for the company or cause its investors to be doubtful. Anyhow, both investors and analysts are hopeful for BBRY to show the true strength in their software revenues.

There are 5 analysts who forecasted that the earnings per share (EPS) of BBRY for the quarter is $-0.04. Looking at their EPS last year, they had a $-0.06 on the same quarter. One analyst, too, gave warning that BlackBerry’s fourth-quarter software revenue may be low.

In addition, Paul Treiber, RBC Capital Markets analyst is expecting that this week’s earnings report can show more progress on the software revenues, presuming 65% of the overall revenues to be software. The previous quarter revealed that 54% of the total revenues of BBRY were software. BlackBerry must show no less than $180 million in software revenue this fourth quarter. There are speculations that investor confidence can be better boosted if the software revenue of BBRY can break from the usual $150 million to $170 million scope. The company’s revenues were playing in between that range over the last five quarters. Amidst speculations, the Wall Street is laying a bet of sales of $288.5 million.

BlackBerry freed itself of handsets and instead focused on an enlarged software business to get back on track. Through acquisitions, BBRY is expected to intensify its growth. An IT analyst even stated that BlackBerry is absolutely a different beast than it was some years ago. However, this makes investors somewhat uncertain about the status of the company.

There are calls that BBRY Chief Executive Officer John Chen needs to educate the market on its new blueprint, especially at this point where BlackBerry is lower by 4.5 on its enterprise-value-to-forward-revenue ratio compared to Oracle Corp and Microsoft Corp - the two contemporaries of BBRY now that it focuses on software enterprise. Nonetheless, BlackBerry turned down requests to give remarks ahead of its earnings release at the moment.

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