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BlackBerry's (BB) Q2 Earnings & Revenues Beat Estimates

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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.

BlackBerry Limited Price, Consensus and EPS Surprise BlackBerry Limited Price, Consensus and EPS Surprise

BlackBerry Limited price-consensus-eps-surprise-chart | BlackBerry Limited Quote

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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