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What to Expect Ahead of BlackBerry's (BB) Q4 Earnings Release

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BlackBerry Limited BB is scheduled to report fourth-quarter fiscal 2022 results on Mar 31.

The Zacks Consensus Estimate for the bottom line is pegged at a loss of 3 cents per share, unchanged in the past 30 days.

In the last reported quarter, the company delivered non-GAAP breakeven earnings on a per share basis compared with 2 cents in the prior-year period. Quarterly total revenues declined 15.6% year over year to $184 million.

The Canada-based firm invests in product development and the go-to-market strategy to drive long-term sustainable growth. It aligned the software and services business around two key market opportunities — Cyber Security and IoT.

BlackBerry Limited Price and EPS Surprise

BlackBerry Limited Price and EPS Surprise
BlackBerry Limited Price and EPS Surprise

BlackBerry Limited price-eps-surprise | BlackBerry Limited Quote

Factors to Note

Continued strength in billings growth and higher demand for IoT and cyber security solutions are likely to have driven BlackBerry’s fiscal fourth-quarter top-line performance. Also, persistent design wins — especially in the automotive vertical for the BlackBerry QNX platform — are likely to have acted as a tailwind. In the fiscal third quarter, the company secured 11 new auto design wins and 13 wins in the general embedded market.

Within the auto sector, increasing consolidation of digital cockpits augurs well for BlackBerry. In the fiscal fourth quarter, BlackBerry teamed up with a leading China-based connected car company PATEO to incorporate its BlackBerry IVY platform into the latter’s intelligent Digital Cockpit solution. The incorporation will help the companies in delivering Service-Oriented Architecture solutions.

BlackBerry QNX is the market leader for safety-certified embedded software in automotive. The technology is in production programs with 45 original equipment manufacturers, and the software is embedded in more than 195 million vehicles globally.

BlackBerry’s Cyber Security business is expected to have witnessed solid traction for its latest unified endpoint security product launches, fueled by back-to-back partnerships with major players in the market. The company’s Cyber business performance is being driven by higher uptake of products like Protect, EPP and Guard Managed Service.

In the last reported quarter, BlackBerry enhanced the integration of BlackBerry Unified Endpoint Manager (UEM) and Microsoft 365 so that enterprises can benefit from BlackBerry’s leadership in security while using Microsoft’s products. BlackBerry UEM enables organizations and end users to be productive from anywhere securely.

Yet, the company’s IoT business is likely to have been negatively impacted by disruptions related to the global chip shortage. Supply chain issues have also been affecting global auto production volumes, which may have been another cause of concern.

What Our Model Says

Our proven model does not conclusively 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.

BlackBerry has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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 for the to-be-reported quarter:

Skylight Health Group Inc. SLHG has an Earnings ESP of +11.11% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Skylight Health Group is scheduled to release fourth-quarter 2021 results on Mar 30. The Zacks Consensus Estimate is pegged at a loss of 9 cents per share. Shares of SLHG have declined 79.6% in the past year.

Spero Therapeutics, Inc. SPRO has an Earnings ESP of +1.89% and a Zacks Rank of 2 at present.

Spero Therapeutics is set to release fourth-quarter 2021 results on Mar 31. The Zacks Consensus Estimate is pegged at a loss of 80 cents per share. Shares of SPRO have decreased 38.4% in the past year.

Lululemon Athletica LULU has an Earnings ESP of +1.28% and a Zacks Rank of 3.

Lululemon Athletica is scheduled to release fourth-quarter fiscal 2021 results on Mar 29. The Zacks Consensus Estimate for earnings is pegged at $3.27 per share, suggesting an increase of 26.7% from the year-ago level. Shares of LULU have returned 1.6% in the past year.


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Skylight Health Group Inc. (SLHG) : Free Stock Analysis Report

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