BlackBerry (BB) Reports Q1 Preliminary Results, Stock Down
BlackBerry Limited BB released its selected preliminary financial results for the first quarter of fiscal 2024.
The company’s Cybersecurity division has encountered prolonged sales cycles, particularly within the government sector, where the company holds a robust market position. Also, delays in finalizing significant deals are anticipated to impact the revenues recognized for this quarter.
The Internet of Things (IoT) business division is actively seizing opportunities in a vast market which is likely to benefit from multi-year positive trends. However, certain automakers are postponing software development programs and production schedules in the short term.
BlackBerry Limited Price and Consensus
BlackBerry Limited price-consensus-chart | BlackBerry Limited Quote
For the fiscal first quarter, the company expects revenues of $132 million, with IoT revenues likely to be $49 million, cybersecurity revenues expected to be $80 million and licensing and other revenues expected to be $3 million.
Following the announcement, shares of the company lost 11.3% in the premarket trading on Sep 7, 2023.
The company remains confident in closing the deals within the fiscal year, reaffirming its full-year outlook for the Cybersecurity and Licensing and Other segments. However, with the rescheduling of software development programs and production schedules at select major automakers coupled with prevailing uncertainties in the macroeconomic landscape, the revenue outlook for the IoT business unit for the full year is adjusted between $225 million and $240 million.
BlackBerry provides intelligent security software and services to enterprises and governments around the world. It offers devices and software platforms for managing security, mobility and communications among hardware, programs, mobile apps and the IoT.
The company recently outlined its long-term financial targets, which include achieving full-year positive non-GAAP EPS and cash flow beginning in fiscal 2025.
Management expects total revenues in the range of $665-$700 million for fiscal 2024 compared with revenues of $624 million delivered in fiscal 2023. BB is targeting revenues in the band of $880-$960 million for fiscal 2026.
The company expects growth in the total addressable market, endpoint security market and managed security services market to drive its Cybersecurity business. For Cybersecurity business, revenues are estimated in the range of $425-$450 million and $540-$590 million for fiscal 2024 and fiscal 2026, respectively.
Zacks Rank & Other Stocks to Consider
BlackBerry currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the broader technology space are Woodward WWD, Aspen Technology AZPN and Badger Meter BMI. Woodward and Badger Meter presently sport a Zacks Rank #1, whereas Aspen Technology currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 earnings per share (EPS) has increased 15.9% in the past 60 days to $4.15.
WWD’s long-term earnings growth rate is 13.5%. Shares of WWD have gained 37.6% in the past year.
The Zacks Consensus Estimate for Aspen Technology’s fiscal 2024 EPS has increased 5.8% in the past 60 days to $6.58.
Aspen Technology’s long-term earnings growth rate is 17.1%. Shares of AZPN have declined 12.6% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 EPS has increased 6.3% in the past 60 days to $2.86.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 6.7%. Shares of BMI have surged 69.5% in the past year.
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