Blackberry Financial Results: Late last week, we talked about the 2013 fiscal results for Research In Motion Ltd (NASDAQ:BBRY). Along with this, we touched a bit on the sales numbers for the Z10 smartphone.
Today, we are going to take a closer look at what analysts make of the company right now including where they see things headed in the near future.
Wells Fargo has boosted some estimates for the once dominant smartphone company, while also adding that guidance might be a bit conservative at this time.
Maynard Um is the top analyst at Wells as far as Research In Motion Ltd (NASDAQ:BBRY) is concerned.
Recently, he talked about gross margin as a surprise for BBRY last quarter. Along with this, according to a report by StreetInsider.com, he feels that investors should be keeping an eye on “carrier launches,” in particular the “QWERTY keyboard-equipped Q10 handset.”
As we noted last week, BlackBerry is hoping to turn things around in fiscal 2014 with the help of an increased marketing budget. With the backing of the Z10 smartphone, along with the company’s new operating system, it will be important for the company to spend more money spreading the word.
In the company’s official press release, announcing fiscal 2013 results, it noted:
“The Company will be increasing its marketing investment in the first quarter of fiscal 2014 in support of the global launch of BlackBerry 10. Including the anticipated 50% sequential increase in marketing spending, the Company believes it will approach breakeven financial results in the first quarter based on its lower cost base, more efficient supply chain, and improved hardware margins.”
What does Um and his team at Wells see happening for Research In Motion Ltd (NASDAQ:BBRY) during Quarter 1 2014? They believe the company will hit a profit of 7 cents per share despite the fact that “prior expectations” called for a loss of 7 cents per share.
At this time, Wells Fargo has placed an outperform rating on Research In Motion Ltd (NASDAQ:BBRY) with a valuation range of $19 to $20.
Do you agree with Maynard Um about where BBRY is headed in the future? Share your thoughts in the comment section below.
Check back here for more updates on Blackberry Financial Results.
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