Canadian smartphone manufacturer,
) is set to release its second-quarter fiscal 2014 results before
the opening bell on Sep 27, 2013.
In the last quarter, the company delivered a 425% negative
earnings surprise. Let's see how things are shaping up for this
Factors to be Considered This Quarter
BlackBerry continues to struggle as the company's newly launched
operating platform BB10 failed to attract buyers. Moreover, its
newly launched devices produced lackluster performance.
Few days back, BlackBerry reported dismal preliminary results for
its second quarter of fiscal 2014 where it reported sales of only
3.7 million handsets. Moreover, the company will incur an
inventory charge of nearly $960 million, mainly associated with
the cost of unsold devices.
Meanwhile, BlackBerry has decided to go private by divesting its
entire stake to a consortium headed by Toronto-based insurance
company Fairfax Financial Holdings Limited for $4.7 billion or $9
per share. Moreover, the company has also decided to offer its
popular BBM service to Android and iPhone users.
Our proven model does not conclusively show that BlackBerry is
likely to beat the Zacks Consensus Estimate this quarter. This is
because a stock needs to have both a positive Earnings ESP and a
Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to
happen. Unfortunately, this is not the case here as elaborated
Negative Zacks ESP:
This is because the Most Accurate Estimate is a loss of 50 cents
while the Zacks Consensus Estimate is lower at a loss of 46
cents. This leads to an ESP of -8.70% for BlackBerry.
Zacks Rank #3 (Hold):
BlackBerry's Zacks Rank #3, decreases the predictive power of
We caution investors against the stock going into the earnings
announcement, as a Zacks Earnings ESP of -8.70% combined with a
Zacks Rank # 3 lowers the possibility of an earnings surprise.
Other Stocks to Consider
Here are some other companies to consider as our model shows
they have the right combination of elements to post an earnings
beat this quarter.
) has Earnings ESP of +1.42% and carries a Zacks Rank #3 (Hold).
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) has Earnings ESP of +20.00% and carries a Zacks Rank #3 (Hold).
) has Earnings ESP of +5.00% and carries a Zacks Rank #3