Despite Mixed Results, Things Could Stabilize For BlackBerry This Year

April 5th, 2016 by Trefis Team

BlackBerry (NASDAQ:BBRY) published a relatively mixed set of Q4 FY 2016 results on Friday April 1, missing market expectations on revenues although its net loss was narrower than expected. [1] Revenue from the software business – on which BlackBerry is betting its long-term growth – dipped by about 13% sequentially, amid lower technology licensing revenue, although this was partially offset by revenues from recent acquisitions.  Hardware revenues remained under pressure (15% sequential decline), despite the launch of BlackBerry’s new flagship Android-based handset – the Priv – as the firm saw delays in negotiating contracts with key carriers. While the company saw revenues decline by about 35% over the last fiscal year, we could see greater stability this year, as software growth largely offsets the declines in service access fee (SAF) revenues. Below, we discuss some takeaways from the company’s recent performance and our outlook going forward. [2]

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We have an $8 price estimate for BlackBerry, which is slightly ahead of the current market price.

See our complete analysis for BlackBerry here

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Notes:
  1. BlackBerry Q4 2016 Earnings Press Release [↩]
  2. BlackBerry’s (BBRY) CEO John Chen on Q4 2016 Results – Earnings Call Transcript, Seeking Alpha [↩]