How BlackBerry Views Fiscal 2018
Non-GAAP revenue between $920 million and $950 million
BlackBerry (BBRY) expects non-GAAP (generally accepted accounting principles) revenue between $920 million and $950 million in fiscal 2018. We’ve seen that Software and Services revenue is expected to grow between 10% and 15% YoY (year-over-year) in fiscal 2018. Earlier this year, a binding arbitration ruling had Qualcomm (QCOM) pay BlackBerry $815 million plus interest and attorneys’ fees over licensing disputes.
This ruling suggests free cash flow for fiscal 2018 will be positive. Operating expenses in fiscal 2Q18 rose to $161 million from $149 million in fiscal 2Q17. Operating expenses are expected to rise slightly in fiscal 3Q17 as well, driven by an increase in sales and marketing expenses.
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What do analysts expect from BlackBerry in fiscal 2018?
Analysts expect BlackBerry to post revenues of ~$217.12 million for the quarter ending in November 2017, with a high revenue estimate of $227.89 million and a low estimate of $206.3 million. If BlackBerry meets analysts’ estimate of ~$217.12 million, it would mean a YoY (year-over-year) fall of 27.9%, compared with revenues of $301 million in fiscal 2Q17.
Analysts expect the company’s revenue to fall 23.36% YoY to $226.78 million in fiscal 4Q18 and 32.3% YoY to $929.81 million in fiscal 2018. Earnings per share (or EPS) are expected to be $0.00 in fiscal 3Q18, down from $0.02 in fiscal 3Q17. For fiscal 2018, EPS is expected to be $0.06.