Since coaching change in 2013, the new chief executive, Chou Chung Chong, has started a massive restructuring of the BlackBerry and then dropped out of its struggling handset hardware business for many years to empower other handset manufacturers such as TCL to make handsets and focus on The software business, which has now become a major driver of growth, follows a brief analysis of a company's business turnaround and future valuations.
Successful transition to the New York Stock Exchange
By 2017, the company's share price will gradually come out of the low. The successful licensing agreement with TCL is a successful transaction. Coupled with the safe and intelligent layout, the company's QNX system is very popular in the market. There is still a lot of potential to tap Partners include industry giants such as Qualcomm (QCOM), Tata Group (TTM) and Baidu (BIDU).
As Blackberry continues to give up its handset hardware and transition to software and services, the company announced that it would delist on the NASDAQ on October 16 and trade on the New York Stock Exchange under the ticker symbol BB for the following reasons: Boost your company's reputation and strengthen the value of the BlackBerry security brand because many of the best companies in the world - including a large number of customers and partners - are listed on the NYSE.
Latest earnings
Q3 fiscal year Q3 earnings results exceeded expectations, according to the United States generally accepted accounting principles (GAAP), total revenue of 226 million US dollars, earnings per share loss of 0.52 US dollars, according to non-GAAP, with a total revenue of 2.35 In the outlook, according to Non-GAAP, the target of maintaining revenue of 9.2-9.5 billion U.S. dollars in FY18 was in line with the strong performance of the first three quarters and is expected to reach the highest expected revenue Full-year earnings per share were positive, with fast-growing software and services revenue growth expected to be 10% to 15%.
DCF valuation
Based on past performance, it is estimated that 20% growth in 2017 will decrease by 2% to 3% annually for the next 10 years and it is estimated that net profit will turn around in 2024. In addition, WACC takes 8.6%, lower than other companies With a large number of government orders from all over the world, demand for products continues to grow, and countries and companies are now paying more attention to safety. In other parameters, the cost of equity is 9% and the cost of debt is 5%. The calculated intrinsic value of the company is $ 16.65. More than 20% more space than the current price.
Conclusion
The transformation of the Company has achieved some results. The software and services have ample room for growth. The orders and customers of the Company have continued to grow. The performance growth has maintained a steady momentum. In the future, as the performance is further improved, there will be room for improvement in the valuation, which deserves long-term concern.