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BlackBerry Earnings Preview: What Wall Street Is Thinking

NEW YORK ( TheStreet) -- BlackBerry (BBRY - Get Report) is getting ready to report first-quarter earnings Friday before the opening bell. The company has been a source of much discussion, as analysts, investors, and media pundits weigh the company's longer-term prospects, especially as it relates to the BlackBerry 10.

BlackBerry 10, which the company unveiled in January, has performed relatively well, with successful sales of both the Z10 and Q10 handsets.

Analysts surveyed by Thomson Reuters expect BlackBerry to earn 6 cents a share on $3.36 billion in sales for the fiscal first quarter of 2014.

While the company is still not the high-flying technology titan it was in the early days of the smartphone market, BlackBerry, under CEO Thorsten Heins, has been able to rebound off the worst, and investors have taken notice.

Shares are up 25% year to date, and have gained 61.66% over the past year, making it one of the better performing stocks in the Nasdaq.

BBRY Chart BBRY data by YCharts

Here's what several analysts on Wall Street are expecting from the Waterloo, Ontario-based technology vendor:

William Blair analyst Anil Doradla (Market Perform):

"BlackBerry will report fiscal first quarter 2014 results on Friday, June 28, before the markets open. In the near term, we believe consensus estimates are achievable (3.3 million and 4.1 million BlackBerry 10 shipments in the May and August quarters, respectively) based on channel fill and pent-up demand. While early Q10 results have clearly been better than Z10, BlackBerry's success has been limited to the enterprisecentric buyers, which have been waiting for a new BlackBerry QWERTY device for a couple of years. With BlackBerry 10 sales being dominated by shrinking base of loyal subscribers, our checks confirmed that BlackBerry faces serious long-term challenges."

CIBC analyst Todd Coupland (Sector Outperformer, $20 PT):

"We forecast Q1 sales of $3.27B (cons. $3.38B), GM of 41.3% (cons. 39.2%) and adj. EPS of $0.05 (cons. $0.09). BB model now has significant leverage from 2012's restructuring reset to deliver profits at 50% of peak volumes. If BB10 shipments were to reach 3.5m units in Q1, EPS est. would be ~$0.30."

"BB is a buy (PT$20) for the BB10 upgrade cycle and emerging market demand for the Q5 (2HF14) that would yield EPS leverage. We also believe that Services is very likely to benefit from iOS and Android mang. fees that would be an important offset to the declines the broader street is expecting."
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