What to Expect From BlackBerry's (BB) Q1 Earnings Release
BlackBerry BB is scheduled to report first-quarter fiscal 2024 results on Jun 28.
The Zacks Consensus Estimate is pegged at a loss of 5 cents per share, unchanged over the past 30 days. The consensus estimate for revenues is pegged at $159.36 million, down 5.1% year over year.
In the last reported quarter, BB reported an adjusted loss per share of 2 cents against the prior-year quarter’s non-GAAP earnings of 1 cent. Quarterly total revenues declined 18.4% year over year to $151 million.
This Canada-based firm invests in product development and go-to-market strategy to drive long-term sustainable growth. It has aligned the software and services business around two key market opportunities — Cybersecurity and Internet of Things (IoT).
BlackBerry Limited Price and EPS Surprise
BlackBerry Limited price-eps-surprise | BlackBerry Limited Quote
Factors to Note
Higher billings growth and rising demand for IoT solutions are likely to have driven BlackBerry’s fiscal first-quarter performance. Consistent design wins for the BlackBerry QNX platform are likely to have acted as tailwinds. The company is witnessing higher uptake of QNX in medical and industrial vertical apart from automotive sector.
In the last reported quarter, BlackBerry highlighted that its IoT business segment achieved record QNX design wins, with royalty backlog reaching $640 million at the end of the fiscal year. Its QNX platform secured 36 new design wins with six in Auto and 30 in the General Embedded Market in the fourth quarter of fiscal 2023. For fiscal first quarter, management expects revenues from this segment in the range of $50-$53 million.
However, global macroeconomic weakness and lingering supply-chain issues are affecting global auto production volumes. Weak macro environment is also weighing on BlackBerry’s Cybersecurity business as clients continue to optimize budget spending.
Nonetheless, the performance of Cybersecurity is likely to have been cushioned by healthy demand for its unified endpoint security products as well as Cylance product line. The company is also witnessing increasing client base within government and financial services’ verticals. For fiscal first quarter, BlackBerry expects Cybersecurity revenues to increase sequentially and to be between $100 million and $110 million.
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 stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
Korn Ferry KFY has an Earnings ESP of +1.49% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Korn Ferry is slated to release fourth-quarter fiscal 2023 results on Jun 27. The Zacks Consensus Estimate for earnings is pegged at $1.01 per share. Shares of KFY have lost 12.5% of their value in the past year.
General Mills GIS has an Earnings ESP of +1.91% and a Zacks Rank of 3.
General Mills is set to release fourth-quarter fiscal 2023 results on Jun 28. The Zacks Consensus Estimate is pegged at $1.05 per share, implying a decline of 6.3% from the prior-year quarter. Shares of GIS have gained 15.1% in the past year.
McCormick & Company MKC has an Earnings ESP of +4.43% and a Zacks Rank of 2.
McCormick & Company is scheduled to release second-quarter fiscal 2023 results on Jun 29. The Zacks Consensus Estimate for earnings is pegged at 57 cents per share, suggesting a year-over-year increase of 18.8%. Shares of MKC have gained 6.7% in the past year.
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Korn/Ferry International (KFY) : Free Stock Analysis Report
General Mills, Inc. (GIS) : Free Stock Analysis Report
McCormick & Company, Incorporated (MKC) : Free Stock Analysis Report
BlackBerry Limited (BB) : Free Stock Analysis Report
