NEW YORK (TheStreet) -- Shares of BlackBerry Ltd. (BBRY) are dropping 1.86% to $8.95 after Credit Suisse estimated 2016 first quarter revenue of $627 million and a loss of $0.01 per share. That compares to the consensus estimates of $684 million for sales and an earnings loss of $0.08.
BlackBerry is expected to release its 2016 first quarter earnings report on June 23, and Credit Suisse maintained its "underperform" rating with $6 price target.
The firm believes that subscriber base will continue to erode, and the monetization of EZ Pass remains difficult in a competitive MDM (Mobile Device Management) market environment.
"The continued decline of services revenue and the limited visibility of MDM remains the principal risk to BlackBerry turnaround, and we continue to have reservations on their ability to ramp up software and operate more competitively," Credit Suisse analysts said.
BlackBerry is a provider of mobile communications and services that is engaged primarily in the provision of the BlackBerry wireless solution, consisting of smartphones, service and software. For more on its first quarter earnings preview, click here
Separately, TheStreet Ratings team rates BLACKBERRY LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate BLACKBERRY LTD (BBRY) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The area that we feel has been the company's primary weakness has been its declining revenues."