On Apr 25, 2014, we issued an updated research report on
BlackBerry has delivered positive earnings surprises in two of
the last four quarters last year, with an average miss of
94.74%. The company reported mixed financial results for
the fourth quarter of fiscal 2014 with the bottom line beating
the Zacks Consensus Estimate but the top line missing the same.
By offering a convenient, reliable and secure way of accessing
email in real time, BlackBerry has been able to successfully
differentiate its products from the other offerings in the
communications market. BlackBerry commands a strong brand value
in the wireless PDA market, leveraging the popularity of its push
The company holds 2,033 patents ranging from mobile security
to push e-mail in high-end smartphones. Its strong patent
portfolio is also expected to help in further innovation.
A major growth product for BlackBerry is its BlackBerry
Enterprise Service 10 (BES10) solution. This is a cross-platform
product interoperable with
) iOS and
) Android. BES10 provides flexibility, scalability, high security
and cost-effectiveness to its customers. Recently, the company
also launched the BES12 platform. BlackBerry remains highly
optimistic about the product and expects it to generate solid
service revenues in 2015.
On the flip side, BlackBerry is facing headwinds like an
ever-increasing competitive landscape, a stagnant product
portfolio and an unfavorable product mix. The launch of Apple's
iPhone came as a big blow. The situation deteriorated after
Google launched its Android software and several handset
manufacturers adopted the operating system.
To worsen matters, BlackBerry's much-awaited BB10-based
smartphones failed to generate significant demand. In the fourth
quarter of 2014, the company sold just around 1.1 million
BB10-based smartphones out of its total handset sales of 3.4
million mobile devices.
APPLE INC (AAPL): Free Stock Analysis Report
BLACKBERRY LTD (BBRY): Free Stock Analysis
NOKIA CP-ADR A (NOK): Free Stock Analysis
SHORETEL INC (SHOR): Free Stock Analysis
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BlackBerry currently has a Zacks Rank #2 (Buy).
Stocks That Warrant a Look
Other well-performing companies worth considering in this sector
). Both Nokia and ShoreTel are Zacks Rank #1 (Strong Buy)