BlackBerry Limited (BB - Free Report) reported solid second-quarter fiscal 2021 (ended Aug 31, 2020) results, with the top and the bottom lines beating the respective Zacks Consensus Estimate.
QNX design wins and major cybersecurity partnerships bode well. The company is also seeing positive signs in various parts of its go-to-market strategy.
Bottom Line
On a GAAP basis, net loss in the quarter was $23 million or loss of 4 cents per share compared with a net loss of $44 million or loss of 10 cents per share in the prior-year quarter. The improvement was mainly driven by a lower operating loss.
Non-GAAP earnings came in at $62 million or 11 cents per share compared with $1 million in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 10 cents.
Revenues
Despite the challenges from the COVID-19 pandemic, quarterly total GAAP revenues grew 6.1% year over year to $259 million, which exceeded the company’s expectations. This was primarily driven by strong demand for BlackBerry’s ‘Work from Anywhere’ solutions, which remains a major driver for the Spark business.
Non-GAAP revenues inched up 1.9% year over year to $266 million. The top line surpassed the consensus estimate of $239 million.
Other Details
Gross profit increased to $199 million from $176 million in the year-ago quarter, thanks to higher revenues and lower cost of sales. Total operating expenses increased to $221 million from $219 million. Operating loss was $22 million compared with a loss of $43 million in the prior-year quarter.
Cash Flow & Liquidity
In the first six months of fiscal 2021, BlackBerry did not generate any cash from operating activities compared with a cash utilization of $47 million in the year-ago period. As of Aug 31, 2020, the company had $837 million in cash and equivalents with $106 million of operating lease liabilities.
Key Picks
A few stocks in the broader industry worth considering are Turtle Beach Corporation (HEAR - Free Report) , Vocera Communications, Inc. and Acacia Communications, Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Turtle Beach delivered a trailing four-quarter positive earnings surprise of 41%, on average.
Vocera delivered a trailing four-quarter positive earnings surprise of 70%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
Acacia pulled off a trailing four-quarter positive earnings surprise of 17%, on average. The company’s earnings topped the consensus estimate in three of the last four quarters.
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BlackBerry Limited (BB - Free Report) reported solid second-quarter fiscal 2021 (ended Aug 31, 2020) results, with the top and the bottom lines beating the respective Zacks Consensus Estimate.
QNX design wins and major cybersecurity partnerships bode well. The company is also seeing positive signs in various parts of its go-to-market strategy.
Bottom Line
On a GAAP basis, net loss in the quarter was $23 million or loss of 4 cents per share compared with a net loss of $44 million or loss of 10 cents per share in the prior-year quarter. The improvement was mainly driven by a lower operating loss.
Non-GAAP earnings came in at $62 million or 11 cents per share compared with $1 million in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 10 cents.
Revenues
Despite the challenges from the COVID-19 pandemic, quarterly total GAAP revenues grew 6.1% year over year to $259 million, which exceeded the company’s expectations. This was primarily driven by strong demand for BlackBerry’s ‘Work from Anywhere’ solutions, which remains a major driver for the Spark business.
Non-GAAP revenues inched up 1.9% year over year to $266 million. The top line surpassed the consensus estimate of $239 million.
Other Details
Gross profit increased to $199 million from $176 million in the year-ago quarter, thanks to higher revenues and lower cost of sales. Total operating expenses increased to $221 million from $219 million. Operating loss was $22 million compared with a loss of $43 million in the prior-year quarter.
Cash Flow & Liquidity
In the first six months of fiscal 2021, BlackBerry did not generate any cash from operating activities compared with a cash utilization of $47 million in the year-ago period. As of Aug 31, 2020, the company had $837 million in cash and equivalents with $106 million of operating lease liabilities.
Key Picks
A few stocks in the broader industry worth considering are Turtle Beach Corporation (HEAR - Free Report) , Vocera Communications, Inc. and Acacia Communications, Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Turtle Beach delivered a trailing four-quarter positive earnings surprise of 41%, on average.
Vocera delivered a trailing four-quarter positive earnings surprise of 70%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
Acacia pulled off a trailing four-quarter positive earnings surprise of 17%, on average. The company’s earnings topped the consensus estimate in three of the last four quarters.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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