U.S. Markets closed
  • S&P 500

    3,638.35
    +8.70 (+0.24%)
     
  • Dow 30

    29,910.37
    +37.90 (+0.13%)
     
  • Nasdaq

    12,205.85
    +111.44 (+0.92%)
     
  • Russell 2000

    1,855.27
    +10.25 (+0.56%)
     
  • Crude Oil

    45.53
    -0.18 (-0.39%)
     
  • Gold

    1,788.10
    -23.10 (-1.28%)
     
  • Silver

    22.64
    -0.81 (-3.44%)
     
  • EUR/USD

    1.1970
    +0.0057 (+0.4788%)
     
  • 10-Yr Bond

    0.8420
    -0.0360 (-4.10%)
     
  • Vix

    20.84
    -0.41 (-1.93%)
     
  • GBP/USD

    1.3314
    -0.0042 (-0.3169%)
     
  • USD/JPY

    104.0850
    -0.1650 (-0.1583%)
     
  • BTC-USD

    17,644.54
    +46.28 (+0.26%)
     
  • CMC Crypto 200

    333.27
    -4.23 (-1.25%)
     
  • FTSE 100

    6,367.58
    +4.65 (+0.07%)
     
  • Nikkei 225

    26,644.71
    +107.40 (+0.40%)
     

BlackBerry (BB) Q1 Earnings Beat Estimates, Revenues Fall Y/Y

Zacks Equity Research
·3 min read

BlackBerry Limited BB reported decent first-quarter fiscal 2021 (ended May 31, 2020) results, with adjusted earnings beating the Zacks Consensus Estimate. The cybersecurity software and services company is capitalizing on the secular trends of securing and connecting endpoints.

In the quarter, BlackBerry QNX was impacted by macro headwinds in the auto and other embedded sectors. On the enterprise front, the company saw healthy demand for BlackBerry’s security, business continuity and productivity solutions in a remote working environment.

Bottom Line

On a GAAP basis, net loss in the quarter was $636 million or loss of $1.14 per share compared with a net loss of $35 million or loss of 9 cents per share in the prior-year quarter. The deterioration was mainly caused by higher operating loss.

However, non-GAAP net income in fiscal first-quarter came in at $12 million or 2 cents per share compared with $5 million or 1 cent per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 4 cents.

BlackBerry Limited Price, Consensus and EPS Surprise

BlackBerry Limited Price, Consensus and EPS Surprise
BlackBerry Limited Price, Consensus and EPS Surprise

BlackBerry Limited price-consensus-eps-surprise-chart | BlackBerry Limited Quote

Revenues

Quarterly total GAAP revenues declined 16.6% year over year to $206 million. This was primarily due to lower software and service as well as licensing revenues. Non-GAAP revenues in fiscal first-quarter dropped 19.9% to $214 million. However, the top line surpassed the consensus estimate of $209 million.

Other Details

Gross profit fell to $143 million from $177 million in the year-ago quarter, primarily due to lower revenues. Total operating expenses increased to $788 million from $213 million. This was caused by a non-cash, one-time goodwill impairment charge of $594 million. Operating loss was $645 million compared with a loss of $36 million in the prior-year quarter.

Cash Flow & Liquidity

In first-quarter fiscal 2021, BlackBerry utilized $31 million of net cash in operating activities compared with a cash utilization of $64 million in the year-ago quarter. As of May 31, 2020, the company had $312 million in cash and equivalents with $111 million of operating lease liabilities compared with the respective tallies of $377 million and $120 million at the end of the prior quarter.

Outlook

Due to uncertainties stemming from the COVID-19 pandemic, BlackBerry did not provide a financial outlook for fiscal 2021.

Zacks Rank & Other Stocks to Consider

BlackBerry currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader industry are Turtle Beach Corporation HEAR, Ooma, Inc. OOMA and Acacia Communications, Inc. ACIA, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Turtle Beach has a trailing four-quarter positive earnings surprise of 46.4%, on average.

Ooma has a trailing four-quarter positive earnings surprise of 228.2%, on average.

Acacia has a trailing four-quarter positive earnings surprise of 17.7%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Turtle Beach Corporation (HEAR) : Free Stock Analysis Report
 
Acacia Communications, Inc. (ACIA) : Free Stock Analysis Report
 
Ooma, Inc. (OOMA) : Free Stock Analysis Report
 
BlackBerry Limited (BB) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research