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Here's What to Expect Ahead of BlackBerry's (BB) Q1 Earnings

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·4 min read
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BlackBerry Limited BB is scheduled to report first-quarter fiscal 2023 results on Jun 23.

The Zacks Consensus Estimate for the bottom line is pegged at a loss of 4 cents per share, unchanged in the past 30 days.

In the last reported quarter, the company delivered on-GAAP earnings of 1 cent per share compared with 2 cents in the prior-year quarter. Quarterly total revenues declined 11.9% year over year to $185 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.

Factors to Note

Higher demand for IoT and cyber security solutions along with strength in bookings growth are likely to have driven BlackBerry’s fiscal first-quarter top line. Consistent design wins — especially in the automotive vertical for the BlackBerry QNX platform — are likely to have acted as a tailwind. In the fiscal fourth quarter, in the IoT business unit, the company’s QNX platform secured 17 new design wins in Auto and 28 in the General Embedded Market.

Within the auto sector, increasing consolidation of digital cockpits and the adoption of Advanced Driver Assist Systems or ADAS augurs well for BlackBerry. In the fiscal first quarter, BlackBerry partnered with Magna International to develop next-generation Advanced Driver Assistance Systems (ADAS) solutions for automakers. Magna will leverage BlackBerry’s QNX software, including the QNX Software Development Platform, QNX Platform for ADAS, QNX OS for Safety and professional engineering services for solution validation, system-level integration and performance optimization.

BlackBerry QNX is the market leader for safety-certified embedded software in automotive. The technology is in production programs with 45 original equipment manufacturers. 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 (UEM) product launches, fueled by back-to-back partnerships with major players in the market. The company’s Cyber business performance is driven by higher uptake of products like Protect, EPP and Guard Managed Service.

In the last reported quarter, BlackBerry announced a partnership with Google to introduce Chrome Enterprise Management with BlackBerry UEM. The new solution will extend enhanced security to various devices powered by Google’s Chrome OS and browsers.

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 is likely to prove as a headwind.

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.

FedEx Corporation FDX has an Earnings ESP of +0.52% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

FedEx Corporation is slated to release fourth-quarter 2022 results on Jun 23. The Zacks Consensus Estimate is pegged at $20.65 per share. Shares of FDX have declined 21.6% in the past year.

Winnebago Industries, Inc. WGO has an Earnings ESP of +1.39% and a Zacks Rank of 3.

Winnebago is set to release third-quarter fiscal 2022 results on Jun 22. The Zacks Consensus Estimate is pegged at $12.40 per share. Shares of WGO have decreased 30.5% in the past year.

Roivant Sciences Ltd ROIV has an Earnings ESP of +2.7% and a Zacks Rank of 3.

Roivant Sciences is scheduled to release fourth-quarter fiscal 2022 results on Jun 28. The Zacks Consensus Estimate is pegged at a loss of $1.35 per share. Shares of ROIV have lost 55.7% in the past year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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