Tim Long Sets Expectations on BlackBerry Ltd (BB) Ahead of Tomorrow’s Earnings

BMO's Tim Long shares outlook and model before tomorrow's print.


BlackBerry Ltd (NYSE:BB) is raring to release fiscal third-quarter results tomorrow morning before the bell tolls. Meanwhile, BMO Capital analyst Tim Long continues to recommend investors sit on the sidelines, and maintains a Market Perform rating on BlackBerry shares, with a price target of $10, which represents a potential downside of 8% from current levels. (To watch Long’s track record, click here)

Long noted, “We model November quarter revenue of $207 million compared with the Street’s $217 million estimate. Our ($0.03) EPS estimate is below the Street’s breakeven outlook. We model software revenue of $184 million in the quarter, a touch below consensus of $187 million. We also model the final quarter of Handheld Device sales. For the February quarter, we model revenue and EPS of $235M/$0.02 compared with consensus of $225M/$0.01.”

“Investor focus has shifted to the performance of BlackBerry’s software segment, especially given the final quarter of sales from handheld devices. Revenue streams in the segment have been less predictable than we would have liked, and we remain cautious on the growth opportunities pursued by the company, where we expect it to face significant competition,” the analyst added.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Tim Long has a yearly average return of 19.6% and a 66.7% success rate. Long has a 15.8% average return when recommending BB, and is ranked #149 out of 4727 analysts.

Out of the 13 analysts polled in the past 12 months, 3 rate Blackberry stock a Buy, 8 rate the stock a Hold and 2 recommend Sell. With a downside potential of 9.3%, the stock’s consensus target price stands at $9.90.

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