Blackberry Ltd (NASDAQ:BBRY) (TSE:BB) will release its fiscal fourth-quarter earnings before the markets open on Friday. Overall, analysts expect the company to post revenue of $1.1-billion and a loss of 57 cents a share for the quarter ending March 1, 2014, according to a report from the Globe And Mail.
Investors have been patient so far
These expected estimates are similar to ones posted by the company in the last quarter, but are far below the numbers posted in the same period last year, when the Canadian firm reported earnings per share of 18 cents on revenue of $2.7 billion.
However, investors have had patience with Blackberry Ltd (NASDAQ:BBRY) (TSE:BB) as it makes an effort to turn around its dipping fortunes and transform from a smartphone maker to more of a software and services provider. BlackBerry shares, after witnessing 10-year lows of $6 in December, following a failed attempt to take the company private, have been somewhat stable around the $9 mark since the start of the year.
It seems like the absence of any major news has come as good news for the company. It must be noted that the main objective of taking the company private was to protect it against the negative stock market repercussions due to the transition measures like job cuts, close of products, etc.
In line earnings could push BlackBerry shares
There’s a very good chance that investors might push the stock price up a bit if earnings come in around the estimates. Also, investors will be anxiously looking at chief executive John Chen to provide details on the company’s cost-saving measures, and the results achieved so far. Since Chen joined in as the Blackberry Ltd (NASDAQ:BBRY) (TSE:BB) CEO in December, the company has taken numerous initiatives like slashing headcount, selling real estate holdings, etc.
Also, stakeholders would be looking for details on the partnership with the manufacturing firm Foxconn. Blackberry Ltd (NASDAQ:BBRY) (TSE:BB) in collaboration with Foxconn plans to come up with lower end devices primarily aimed at overseas markets such as Indonesia, where the Canadian firm enjoys still some popularity. Foxconn deal, announced in late December, is expected to leave BlackBerry with more resources to focus on in-house talent.
At the end of 2013, BlackBerry’s market share in the global smartphone segment was just 0.6% compared to 3.2% in 2012.