Canadian handset manufacturer
) is scheduled to report fourth-quarter fiscal 2014 financial
numbers before the opening bell on March 28, 2014.
In the last quarter, the company delivered a 45.7% negative
earnings surprise. Let's see how things are shaping up for this
Factors to Influence This Quarter
In Dec 2013, BlackBerry entered into a 5-year agreement with
the world's leading developer of electronic products and
components, Foxconn. Such a strategic decision will help the
company target the smartphone markets of Indonesia and other
emerging nations. Foxconn will supply inventories for the
smartphones at competitive rates, thereby improving margins for
A major growth product for BlackBerry is its BlackBerry
Enterprise Service 10 (BES10) solution. This is a cross-platform
product interoperable with Apple's iOS and Google's Android.
BES10 provides flexibility, scalability, high security and
cost-effectiveness to its customers.
However, BlackBerry is facing threats like an intensifying
competitive landscape, a stagnant product portfolio and
unfavourable product mix. The launch of Apple's iPhone also came
as a big blow. The situation aggravated once Google launched its
Android software and several handset manufacturers adopted the
We remain concerned about BlackBerry's decision to change the
business model of its high-margin services fees segment. As per
the new structure, only those subscribers, who opt for advanced
services including greater security, will continue to pay service
fees. However, the other customers will generate little or no
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, 2 or 3 for this to happen. Unfortunately,
this is not the case here as elaborated below.The Sell-rated
stocks (#4 and 5) should never be considered going into an
The Most Accurate estimate and the Zacks Consensus Estimate are
poised at a loss of $0.56. Hence, the ESP is 0.00%.
BlackBerry's Zacks Rank #3 (Hold) when combined with a Zacks
Earnings ESP of 0.00% lowers the possibility of an earnings
Other Stocks to Consider
Here are some other companies to consider as our model shows
these have the right combination of elements to post an earnings
beat this quarter.
NII Holdings Inc.
) with earnings ESP of +4.76% and a Zacks Rank #3.
Liberty Media Corporation
) with earnings ESP of +2.89% and a Zacks Rank #3.
) with earnings ESP of +1.47% and a Zacks Rank #3.
BLACKBERRY LTD (BBRY): Free Stock Analysis
LIBERTY MEDIA-A (LMCA): Free Stock Analysis
NII HLDGS-CL B (NIHD): Free Stock Analysis
AT&T INC (T): Free Stock Analysis Report
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