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BlackBerry (BB) to Report Q4 Earnings: What's in the Offing?

Zacks Equity Research

BlackBerry Limited BB is scheduled to report fourth-quarter fiscal 2020 results (ended Feb 29, 2020) on Mar 31, after the closing bell. In the last reported quarter, the company delivered a positive earnings surprise of 200%, beating the Zacks Consensus Estimate by 2 cents. BlackBerry topped the Zacks Consensus Estimate for earnings twice in the trailing four quarters, the positive surprise being 68.8%, on average.

Factors at Play

The cybersecurity software and services company continues to invest in product development and go-to-market strategy to drive long-term sustainable growth. During the quarter under review, BlackBerry collaborated with MARELLI Electronics, a global automotive supplier, to integrate QNX Platform for Digital Cockpits in MARELLI’s eCockpit and Cluster solution. China-based electric carmaker WM Motor embedded BlackBerry’s QNX Neutrino Real-time Operating System and other software products within its third-generation SUVs.

Damon Motorcycles’ CoPilot warning system was powered by BlackBerry QNX technology across its entire line-up of electric motorcycles. BlackBerry teamed up with Amazon Web Services to demonstrate a connected vehicle software platform for in-vehicle applications. BlackBerry and ANSYS joined forces to support BlackBerry QNX’s system for connected and autonomous vehicles. These are expected to get reflected positively in the upcoming results.

BlackBerry unveiled a concept solution that OEMs and fleet managers can use for vehicle health and security. The company’s Radar solution was integrated with Trimble’s TMW.Suite and TruckMate transportation management system. BlackBerry also enhanced products to the endpoint protection platform, and endpoint detection and response pillars of its Spark platform.

The company’s performance is expected to have benefited from these positives. For the fiscal fourth quarter, the Zacks Consensus Estimate for adjusted earnings per share is pegged at 4 cents, indicating a decrease of 63.6% from the prior-year quarter’s reported figure.

What Our Model Says

Our proven model doesn’t predict an earnings beat for BlackBerry this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here as you’ll see below:

Earnings ESP: BlackBerry’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both are pegged at 4 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

BlackBerry Limited Price and EPS Surprise

BlackBerry Limited Price and EPS Surprise

BlackBerry Limited price-eps-surprise | BlackBerry Limited Quote

Zacks Rank: BlackBerry currently carries a Zacks Rank #2.

Stocks to Consider

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

McCormick & Company, Incorporated MKC is slated to release quarterly results on Mar 31. It has an Earnings ESP of +0.77% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ascendis Pharma A/S ASND is scheduled to release results on Apr 1. The company has an Earnings ESP of +3.15% and a Zacks Rank #3.

CarMax, Inc. KMX has an Earnings ESP of +0.13% and a Zacks Rank of 3. The company is set to report results on Apr 2.

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