BlackBerry Ltd. (NASDAQ: BBRY) remains on a path to a turnaround under new CEO John Chen. Or does it? Getting excited about anything at BlackBerry these days seems very hard to do, but Chen has been making progress where he can. This Thursday’s expected earnings report may seem as though it is hard to look for anything good — on top of losses and perhaps lower sales numbers continuing.
Source: Wikimedia Commons
BlackBerry has been moving to a fab-lite model. It has given up on trying to be the consumer first choice for handsets, but it has not given up on the enterprise market nor on the international markets.
When BlackBerry reports earnings this Thursday, it is widely expected that the company will post wide losses and a decline in sales. Thomson Reuters is calling for a loss at $0.25 per share (versus -$0.13 EPS a year ago) and a 68% decline in revenue to $963.9 million for the last quarter.
For the coming year (Feb. 2015), Thomson Reuters has its consensus estimates as being -$0.94 EPS (versus -$1.35 EPS last year) and $3.94 billion in revenues (down 42% from $6.81 billion a year ago).
Where BlackBerry’s story gets more than interesting is in the charts. At $7.84 in late Monday trading, BlackBerry’s share price is wedged between the 50-day and 200-day moving averages — $8.21 for the 200-day and $7.53 for the 50-day. Each longer-term moving average has acted as a form of chart resistance since March.
Another issue for traders to consider is the BlackBerry short interest. As of the May 30 settlement date, BlackBerry’s short interest was over 93.4 million shares. This is a massive number at more than 12 days to cover, but we would point out this is actually the lowest short interest reading on a raw share count basis over the past year. The short interest was nearly double this amount a year ago.
ALSO READ: 12 Analyst Stocks Under $10 With Huge Implied Upside
At $7.84 in late trading on Monday, BlackBerry’s trading range has been $5.44 to $15.09 over the past 52-weeks. The consensus price target is also right at the current price as Thomson Reuters represents the analyst mean target price of $7.87.
We will offer more details and units expected to be sold and ongoing restructuring efforts as the report approached closer.
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
