NEW YORK (
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
in January, has performed relatively well, with successful sales of both the
Analysts surveyed by
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
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
Here's what several analysts on Wall Street are expecting from the Waterloo, Ontario-based technology vendor:
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 haveclearly 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."
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 leveragefrom 2012's restructuring reset to deliver profits at 50% of peak volumes. IfBB10 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 marketdemand for the Q5 (2HF14) that would yield EPS leverage. We also believethat Services is very likely to benefit from iOS and Android mang. fees thatwould be an important offset to the declines the broader street is expecting."
analyst Steven Li (Market Perform):
"We maintain our Market Perform rating. Near-term, financial trends at BlackBerry are likely improving given substantial sell-in of Z10, Q10, and Q5 devices globally creating potential for reported revenue and EPS to be better than some fear. However, we remain more cautious longer term given the uncertain level of decline in the Services revenue stream, and the lack of positive sustained sell through data on BB10 devices to date."
analyst Andy Perkins (Buy, $17 PT) :
"We are forecasting Z10 sales to be in excess of 4m handsets (1m previous quarter) with Q10 sales just under 1m units. We have little sales evidence for Blackberry 7 models, which suggests that volumes may have fallen sharply. We have found some supporting evidence for RIM's improving situation in analysis by Kantar and gs.statcounter.com. Interestingly, this evidence is stronger in the UK, one of the first markets where the Z10 and Q10 handsets were launched. So our base case scenario now assumes that the new handset sales have been faster than we previously assumed. We have increased this quarter's forecasts, with lower sales of older handsets (ASP $200) and higher sales of the new Z10 (ASP $500) and Q10 (ASP $550) models. This boosts our sales to $3.7bn (from $2.7bn) and increases our EPS for the quarter from $0.00 to $0.06. Longer term, we have boosted our handset sales assumptions, now going for almost 23m BB10 units this year (previously 16m) and this increases our EPS by 20% to $0.85 from $0.71 previously."
Shares of Blackberry were lower in Thursday trading, off 1.07% to $14.75.
Written by Chris Ciaccia in New York