BlackBerry

BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) is set to report its fiscal fourth quarter and full year results on Monday at 8:00 AM EDT. Analysts are not quite optimistic about the company. Wall Street expects the ailing Canadian company to post a loss of $0.57 a share on a revenue of $1.11 billion in the fourth quarter. JPMorgan analyst Rod Hall expects a revenue of $905.6 million, far below the Wall Street consensus. BlackBerry earned a profit of $0.22 a share on revenue of $2.68 billion in the same quarter last year.

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BlackBerry’s smartphone shipment expected to decline 75% YoY

For the full-year, BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) is expected to suffer a loss of $1.82 a share with $6.95 billion in revenues. In the same period a year ago, BlackBerry had reported $11.07 billion in sales and $0.60 a share in net loss. The company management has stated that there won’t be any further writedowns. That doesn’t mean there won’t be any downside surprises on Friday.

Investors expect to hear about the progress with Foxconn Technology Co., Ltd. (TPE:2354) and the company’s long-term outlook. For the fourth quarter, JPMorgan expects smartphone shipments to decline 75% YoY and 21% QoQ to $1.5 million. Wall Street consensus forecasts the company to ship 1.8 million units. BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)’s BB10-based smartphones were epic disasters. The company unveiled two new devices at the Mobile World Congress last month. One, the Z3, will be launched next month in Indonesia. Rod Hall says BB10 handset sales will plummet 70% YoY to just 300K units.

BlackBerry’s gross margins likely to improve

The JPMorgan analyst expects the average selling price (ASP) to decline 5% QoQ to $234. The ASP for BB10 handsets is estimated to fall 3% to $284. However, the research arm of the U.S. banking giant expects BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)’s gross margins to rise from 33.9% in Q3 to 35.5% in Q4. The company’s cash position is expected to deteriorate further. The Waterloo, Canada-based company is likely to burn $900 million during the fourth quarter and $400 million in the fiscal 2015.

BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) shares plunged 2.95% to $8.90 at 12:48 PM EDT.