What's In The Offing For BlackBerry (BB) In Q3 Earnings?
Zacks Investment Research | Dec 17, 2017 09:03PM ET
BlackBerry Limited (NYSE:BB) is slated to release third-quarter fiscal 2018 results on Dec 20, before the market opens.
Last quarter, the company reported earnings of 5 cents per share compared favorably with the Zacks Consensus Estimate of a loss of a penny. Results were aided by robust software sales. Total revenues in the quarter were $249 million, down 25.4% year over year. However, the top line surpassed the Zacks Consensus Estimate of $231 million.
Lets see whats in store this earnings season.
Factors Likely at Play
We expect BlackBerry’s fiscal third-quarter results to be benefited by strong software sales on the back of its decision to end all internal hardware development and focus exclusively on software business.
Of late, the company has also inked many deals to bolster its software business. For example, during the quarter BlackBerry signed a sales and distribution agreement with Tokyo Electron Device Limited. Per the agreement, Japanese device manufacturers will have access to Blackberry (TO:BB)'s QNX Software Development Platform 7.0, the most advanced and secure embedded platform in the market.
In fact, BlackBerry’s efforts to expand its product portfolio augur well and should boost results in the to-be-reported quarter. The company expects its Software and Service revenues to rise between 10% and 15% for fiscal 2018.
During the quarter, BlackBerry was ordered to pay Nokia (NYSE:NOK) approximately $137 million following the loss of a payment dispute with the latter. We expect management to provide an update on the issue on the fiscal third-quarter conference call.
However, BlackBerry is exposed to risks related to foreign currency fluctuations as it operates globally. Adverse foreign currency effects might also hurt results in the to-be-reported quarter. High costs might hurt the bottom line as well.
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