Q2FY2017 Preview

Tomorrow comes another day which investors, media and BlackBerry enthusiasts have been awaiting. The Q2FY20117 earnings call is set to be announced tomorrow morning where John Chen will release the company’s earnings and other various important information.  

So far this quarter has been steady for the company in announcements and lack of bad/terrible news. However, the street is expecting BBRY to have a EPS of -$0.05 which is better than the -$0.13 from last year. Additionally, they expect the revenue to drop by 20% to $394.

Those figures are from various sources, however, here are some thoughts of my own on a couple aspects. First off, I personally expect still an operating income loss. The company has yet to make me believe that they will be in a positive position with their revenue and expenses. Once revenue starts a return and increase then I’ll think otherwise. I expect that device sales will drop both Q/Q and Y/Y yet again. Frankly the company has only launched the DTEK50 and I have yet to see one in the wild. Maybe the phone has sold better in other parts of the world but it has not done well here in Canada.

Things to watch for in the press release and during the earnings call is:

  • Hardware decision – John Chen is getting close to his self-imposed timeline for the decision on the hardware division.
  • Radar – Just announced deal with Caravan Group, let’s see if Chen hints that more companies are lining up for this service.
  • DTEK50 Sales – Whilst I have no expectation of BlackBerry releasing exact figures on specific devices. However, I hope that Chen gives an indication as to how well/poorly the device has been received.
  • Software and Services – Last quarter this segment saw a significant increase.  Let’s see if BlackBerry continues to maximize on its momentum.

Either way tomorrow will be interesting nonetheless. Let’s hope that BlackBerry puts everyone’s doubts to bay and shows strong numbers.

What your thoughts and predications for the call?