The second-quarter adjusted earnings per share for Blackberry is expected to worsen from -$0.11 to -$0.155. Sales for the phone manufacturer are also expected to have fallen down from $966 million last quarter to $945 million, and this will see last quarter’s loss of $6 million jump up to $126 million.
In years gone by Blackberrys were synonymous with business, and any meeting would result in a handful being displayed on tables. The reason for this was the greater security to information that Blackberry offered in comparison to other smartphones. Companies such as Apple and Samsung have spent time and money improving their security. Where Blackberry, arguably, dropped the ball was its sluggishness in improving its functionality or compatibility with third-party apps. This meant that the premium status it held for so long was gradually eroded.
That is not to say it does not still have its fans. The recent headlines caused by hacked celebrity images have highlighted the work still needing to be done by Apple. British prime minister David Cameron has commented on his dependence to his Blackberry device recently, and since 2012 iPads have been banned from cabinet meetings due to their lack of security.
The shares in Blackberry have jumped by 48% in 2014 but still remain below the year highs of $11.46. The 50-day moving average has offered some support, but these quarterly figures are not expected to impress and this momentum looks set to be tested.