Any time a company reports earnings, significant price movements can be expected based on how said company has performed in the quarter in question.
For BlackBerry Ltd. (TSX:BB)(NYSE:BBRY), a number of questions will be on the table, given the transitory state of the company from a hardware company to a pure play software company.
With a $100-million investment made in the company’s new QNX autonomous vehicle segment last year now expected to play a larger role in driving BlackBerry’s top and bottom line numbers, performance in this business unit will perhaps be assessed with greater scrutiny in the past, given the expected penchant for results by investors.
While software revenues (some of which are related to the aforementioned QNX vehicle program) have continued to climb as a percentage of overall revenue, revenue has continued to be on the decline for some time, a trend investors and analysts will be hoping BlackBerry is able to buck this time around.
The ultimate profitability of BlackBerry for the third quarter of 2017 is also a question many investors will have; given the ability of BlackBerry’s management team to churn out surprise positive earnings in quarters analysts determined would be counted as losses, the possibility that CEO John Chen pulls another rabbit out of his hat and produces a huge win for investors remains a possibility which should be considered. All things being equal, however, I’m not overly confident this will be the case.
Invest wisely, my friends.
