BlackBerry Set To Report 4QFY16 Earnings

BBRY, blackberry stock, blackberry shares, smartphone makers, smartphone manufacturer, blackberry financial results, BBRY earnings call

BlackBerry will report its financial results for the fourth quarter on April, 1 , 2016. Everyone is anxiously waiting for it to report the sales figure for the android powered smartphone

The Canadian smartphone manufacturer, BlackBerry Ltd will be reporting its fourth quarter earnings for fiscal year 2016 (4QFY16) on April 1, 2016. As per the pre-announcement, the smartphone maker is expected to report revenue of $559.5 million along with adjusted loss per share of $10 cents.

Credit Suisse has shared its reviews on the quarterly financial results of the smartphone maker stating that it is expecting revenue of $558.9 million along with an adjusted loss per share of 9 cents. Kulbinder Garcha, analyst at the financial services and research firm, is estimating that the company will report gross margin of 42.9% along with a free cash flow of almost $56 million.

Analysts further predicts that in case the Canadian company shows even remote signs of recovery in its financial performance, it will be because of its IP licensing sales which were reported to be $53 million in the previous quarter. He also added that BBRY still faces a number of issues, pointing fingers at the constant decline in the company’s services business along with doubtful acquisitions that includes that of Good Technology.

Credit Suisse’s analysts further expect that the smartphone manufacturer will report revenues of $775 million for fiscal year 2016 which he expects will decline in fiscal year 2017 to $459 million . In addition to that, he says that revenue for fiscal year 2016 and 2017 are estimated to stand at $526 million and $634 million – as it has been facing continuous slowdown in its hardware services sector. He noted that despite the fact that the hardware sector of BlackBerry dropped significantly last quarter, it managed to report stronger gross margin of 44.9%.

With the introduction and success of the android powered BlackBerry Priv, the average selling price (ASP) of hardware rose significantly during the previous quarter but for the current quarter, analysts are predicting that the hardware sector will report revenue of $265 million.

He stated that inherent challenges can be observed in the company and it is taking a lot of effort on the company’s part in the services as well as the hardware business. They are assuming that BlackBerry might be shutting down its hardware service business by the end of fiscal year 16 and further winding up its hardware service sector by 2017.

The financial services and research firm, Credit Suisse, have maintained a underperform rating with a price target of $6. In an effort to turn the fortune of the smartphone company’s fate, it gave in and launched its first android-powered smartphone, Priv hence moving away from its blackberry operating system. It was also an attempt to turnaround the slow hardware sales that was prevailing however since it did not disclose the sales of the smartphone during the previous quarter it cannot be said for sure how the device is currently performing. This will be the first full quarter that will witness Priv sales, so we are expecting that the company will announce the sales figures of it.

Individual reviews of the Priv suggest that the 5.4-inch size display smart device has performed well and has been taken positively in the market. It was priced at $799 including itself in one of the top brands in the industry. The success of the company, at this point, completely lies on the sales of the Priv. In case it fails to impress the investors and the industry as the CEO John Chen stated earlier, the organization will exit the smartphone market.