BlackBerry Ltd Earnings Could Prove ‘Rebuilding Point’: Analyst

BlackBerry Ltd Earnings Could Prove ‘Rebuilding Point’: Analyst
user1462590383 / Pixabay

BlackBerry is set to post earnings this Friday, March 28 before the opening bell, and according to RBC Capital Markets’ Mark Sue, this could be a “rebuilding point” for the company and its stock. Sue expencts the Canadian company to sell 1.3 million smartphones units.

Optimistic going forward

Sue expects the company to report a big miss with $661 million in revenue for the three months ended in February, below the consensus estimate of $804 million. According to Sue, BlackBerry will post a loss of 7 cent per share, more than the expected 3 cent loss, because lower revenue will make it hard to cover operating expenses of around $390 million per quarter.

[Exclusive] DG Value Underperforms In H1, Sees Growing Number Of Distressed Opportuities

Dov Gertzulin's DG Capital has had a rough start to the year. According to a copy of the firm's second-quarter investor update, which highlights the performance figures for its two main strategies, the flagship value strategy and the concentrated strategy, during the first half of 2022, both funds have underperformed their benchmarks this year. The Read More

For the coming quarters, Sue expects revenue to increase every time with around $729.2 million in the May quarter, $730.73 million in August, $274 million in November and $739 million in the year-end February quarter. Further, the analyst expects the company to reach break-even by the February quarter of next year.

BlackBerry turning into a software company

Sue does not expect BlackBerry to earn any hardware profits this year but is optimistic going forward. The BlackBerry Classic had a modest start but is expected to leave a limited impression in the quarter, considering the fact that the handset was released midway through. “With devices now GM positive, 8M-10M units are needed to have scale for profitability. We