Earnings Preview: What to Expect When BlackBerry Ltd. Reports Quarterly Results

BlackBerry Ltd. (NASDAQ:BBRY) is set to report its quarterly earnings on Friday at 8:00 am EST shortly before the market opens.

Shares of the beleaguered smartphone maker have been on fire recently, rising more than 10% over its last five trading sessions. The company has been buoyed by the news that Wal-Mart is putting its new flagship Priv device in its stores, which should help sales of BlackBerry’s first smartphone running on the Android operating system. During the same time, the overall stock market has been flat.

Will BlackBerry shares be able to continue this momentum when earnings results come out? Let’s take a closer look.

Analyst expectations

Analysts are somewhat bearish on BlackBerry coming into earnings season, collectively predicting the company will post a loss of $0.15 per share for the quarter. This compares to last year’s surprise showing of profitability when it posted a penny per share profit.

Revenue is also expected to take a huge hit, at least compared with last year. Sales are expected to fall nearly 40% to US$487.92 million. It posted nearly US$800 million in sales during the comparable quarter last year.

But it doesn’t look quite as bad when comparing it with the company’s most recent quarter. In the second quarter–which ended on August 29–BlackBerry posted revenue of US$490 million. The company lost $0.24 per share during the quarter, but it did post a US$51 million profit before a dilution adjustment.

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