BlackBerry Faces Decline Again, Analysts Turned Bearish

The smartphone makers are again to be believed to be going down on the stock index and the analysts have turned overly bearish about it.

BlackBerry has been experiencing quite a troublesome time on the index lately and the analysts in the industry seem to be turned more than bearish towards the stock of the cell phone makers. Recently, analysts at Credit Suisse run coverage on the smartphone making company following the extremely disappointing quarterly report that was released by the Canadian firm in which the equity firm seemed to be at its most bearish. The firm has been deemed as quite weak, it is has been granted with an ‘underperform’ rating by Suisse analysts. The revenue estimations that were made by the industry analysts before the earnings report came out were also not met by the firm which has disappointed investors to the extreme.

In the recent research report that has been presented by the analysts at Credit Suisse, it has emerged as a fact that the firm has performed below expectations in the earnings report for the first quarter of 2016. The software revenue that was received by the Canada-based firm came around at $138 million which were seen to increase by 156 percent keeping in mind the previous quarter the firm went through.

Even though these figures look positive on the front, the report that was made by Credit Suisse analysts showed that the increase in the revenue in the software firm was not due to the high sales but it was because of the excessive support that was given to licensing revenues which the analysts believe is taking place due to the increasing mergers and take over plans that were gone through. This means that this sales increased in software is not long term and does not determine any strength of the mobile phone makers in the industry.

The earnings report for the quarter also showed that BlackBerry business experienced an increase by around 20 percent on an overall basis but this also was not taken to be an exceptional factor by the analysts. The smartphone making company has also reported that it is looking towards growing its business more by the end of the present fiscal year., The total sales received by the company for the full year is expected to come around $500 million by the firm itself, which was stated in the earnings report that was presented two days back.

As for the BlackBerry services that were at one point in the industry at their best, have now seemed to experience a dip that it seems difficult to avoid. The earnings report says that the firm has fallen by around 19 percent on the services department which is also being taken as a massive drop.