Canadian smartphone manufacturer
) is set to release its third-quarter fiscal 2014 results before
the opening bell on Dec 20, 2013.
In the last quarter, the company delivered a 6% 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
recently launched devices failed to produce significant demand.
However, a major growth product for BlackBerry is its BlackBerry
Enterprise Service 10 (BES10) solution which is being used by
more than 18,000 enterprises. This flexible, scalable, high
security and cost-effective cross-platform product is
interoperable with Apple's iOS and Google's Android. Furthermore,
availability of BBM messenger on iOS and Android platform coupled
with the launch of BBM Channels will continue to boost the social
networking business. Moreover, a strong cash position and a
debt-free balance sheet will tend to act as tailwinds for the
company going forward.
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
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
Zero Zacks ESP:
This is because both the Most Accurate estimate and the Zacks
Consensus Estimate are poised at 46 cents. This leads to an ESP
of 0.00% 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 0.00% 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
T-Mobile US, Inc.
) has Earnings ESP of +46.67% and carries a Zacks Rank #3
BLACKBERRY LTD (BBRY): Free Stock Analysis
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QUALCOMM INC (QCOM): Free Stock Analysis
T-MOBILE US INC (TMUS): Free Stock Analysis
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) has Earnings ESP of +33.33% and carries a Zacks Rank #3 (Hold).
) has Earnings ESP of +3.67% and carries a Zacks Rank #2 (Buy).