Canadian smartphone manufacturer BlackBerry is scheduled to reveal its Q3 results on Friday, December 18, at 8 a.m. EST, making Wall Street analysts very curious about the final numbers.
According to Value Walk, the company’s shares fell as much as 4.56%, to $7.80, this Thursday, and analysts expect the Q3 revenue to decline 38.30% YoY to $489 million. Therefore, they’re expected to announce a loss of 14 cents per share, which is a lot, compared to the same period of 2014, when there was a 1 cent per share profit.
Despite this, a 40% decline in revenue is not bad for BlackBerry, comparing this with the revenue from the second quarter of the year, which was $490 million. According to Tim Long, BMO Capital Market analyst, cited by Value Walk, the Q3 revenue should be around $482 million, with a 12 cents per share loss.
Mr. Long claims that software revenue is also a very important metric, allowing BlackBerry to reach $106 for Q3 2014, helping the company to reach its $500 million per year target. Of course, we shouldn’t forget that these results wouldn’t have been possible without two large IPR deals and the acquisition of Good Technologies, strengthening BB’s position as a provider of secure technologies.
Finally, it’s essential to mention that the results from Q3 are influenced a lot by the release of BlackBerry Priv, the company’s first Android smartphone, after years of sticking to their own operating system. The device registered impressive sales, being sold out at Wal-Mart when it was made available.
Before introducing the new handset, BlackBerry declared that they will consider exiting the smartphone market if the Priv won’t bring profit. Their previous models didn’t perform that good on the market, mostly due to the operating system, making BlackBerry feel frustrated, since a few years ago it was one of the top players, alongside Nokia.