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BlackBerry (BB), a provider of intelligent security software and services to businesses and governments, will report its Q1 earnings on June 24 after markets close. Over the past year, the stock has gained approximately 128% and is currently trading close to C$16.00. Strong earnings could boost BB shares, so let’s have a look at what analysts are expecting.
Analysts on average, expect BlackBerry to post a loss of $0.05 per share in Q1 2022, compared to earnings of $0.02 in Q1 2021. Estimated revenue is $171.25 million, representing a decrease of 20% from the prior-year quarter ($214.09 million).
BlackBerry missed earnings estimates in the past eight quarters and could miss estimates again in the coming quarter.
Points to Watch
The last fiscal year was difficult for BlackBerry, with declining revenues and increasing losses. However, total billings had returned to pre-pandemic levels by the end of the period, with demand for its SPARK cybersecurity product and QNX operating system improving as the year progressed.
The expected decrease in BlackBerry’s revenue will likely come from its License and Other segment revenues. The market will want to see improved trends in its Enterprise Software Services segment, which has struggled for several consecutive quarters.
Investors will want to see if BlackBerry's business and operational fundamentals can justify the stock's price performance, as Blackberry has become a popular Reddit stock. (See BlackBerry stock chart on TipRanks)
Two months ago, RBC Capital analyst Paul Treiber kept a Sell rating on BB with a C$9.29 target price. This implies 41.2% downside potential.
Overall, BB scores a Moderate Sell rating among Wall Street analysts based on 2 Holds and 1 Sell. The average BlackBerry analyst price target of C$11.20 implies 29% downside potential to current levels.
TipRanks’ Smart Score
BB scores a 6 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock returns are likely to be in line with the overall market.