BlackBerry Ltd Earnings Could Prove ‘Rebuilding Point’: Analyst

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BlackBerry Ltd Earnings Could Prove ‘Rebuilding Point’: Analyst
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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.

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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