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BlackBerry (BB) Reports Q4 Preliminary Results, Stock Down
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BlackBerry Limited (BB - Free Report) has released its selected preliminary financial results for the fourth quarter and fiscal 2023.
Q4 Preliminary Results
For the fourth quarter, the company expects revenues of $151 million, with Internet of Things (IoT) revenues likely to be $53 million, cybersecurity revenues expected to be $88 million and licensing and other revenues expected to be $10 million. Cybersecurity billings are expected to increase sequentially to $107 million.
However, the company results will include a material non-cash, one-time goodwill impairment charge for the Spark reporting unit, which is expected to be up to $440 million. This is primarily driven by the drastic stock market decline in 2022 and the corresponding impact on the company’s market capitalization.
Following the announcement, shares plummeted 12.3% and closed at $3.50 on Mar 7, 2023.
For fiscal 2023, BlackBerry expects total revenues of approximately $656 million, with IoT revenues likely to be approximately $206 million, cybersecurity revenues expected to be $418 million, and licensing and other revenues projected to be approximately $32 million. Cybersecurity billings are expected to be approximately $401 million.
The IoT business unit closed the year strongly, and the company expects to deliver year-over-year revenue growth of approximately 16%, in line with the previous guidance.
However, the revenue for the cybersecurity business unit is expected to be lower than the outlook provided during the last-reported quarter, primarily due to certain large government deals shifting to fiscal 2024. The company has witnessed an elongation in deal cycles in the government vertical, like additional deal reviews and approvals.
Owing to the above-mentioned challenges, the company has taken proactive steps in the fourth quarter to balance investments and costs and achieve profitable growth. The company will report fourth-quarter earnings and will provide fiscal 2024 guidance on Mar 30, 2023.
Some better-ranked stocks in the broader technology space are Arista Networks (ANET - Free Report) , Perion Network (PERI - Free Report) and Pegasystems (PEGA - Free Report) , each presently sporting a Zacks Rank #1.
The Zacks Consensus Estimate for Arista Networks 2023 earnings is pegged at $5.79 per share, rising 11.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.2%. Shares of ANET have increased 22.9% in the past year.
The Zacks Consensus Estimate for Perion’s 2023 earnings is pegged at $2.69 per share, rising 16% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
Perion’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 31.7%. Shares of PERI have increased 76.4% in the past year.
The Zacks Consensus Estimate for Pegasystems 2023 earnings is pegged at $1.31 per share, rising 111.3% in the past 60 days.
Pegasystems earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average surprise being 11.2%. Shares of the company have declined 40% in the past year.
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BlackBerry (BB) Reports Q4 Preliminary Results, Stock Down
BlackBerry Limited (BB - Free Report) has released its selected preliminary financial results for the fourth quarter and fiscal 2023.
Q4 Preliminary Results
For the fourth quarter, the company expects revenues of $151 million, with Internet of Things (IoT) revenues likely to be $53 million, cybersecurity revenues expected to be $88 million and licensing and other revenues expected to be $10 million. Cybersecurity billings are expected to increase sequentially to $107 million.
However, the company results will include a material non-cash, one-time goodwill impairment charge for the Spark reporting unit, which is expected to be up to $440 million. This is primarily driven by the drastic stock market decline in 2022 and the corresponding impact on the company’s market capitalization.
Following the announcement, shares plummeted 12.3% and closed at $3.50 on Mar 7, 2023.
BlackBerry Limited Price and Consensus
BlackBerry Limited price-consensus-chart | BlackBerry Limited Quote
Fiscal 2023 Preliminary Results
For fiscal 2023, BlackBerry expects total revenues of approximately $656 million, with IoT revenues likely to be approximately $206 million, cybersecurity revenues expected to be $418 million, and licensing and other revenues projected to be approximately $32 million. Cybersecurity billings are expected to be approximately $401 million.
The IoT business unit closed the year strongly, and the company expects to deliver year-over-year revenue growth of approximately 16%, in line with the previous guidance.
However, the revenue for the cybersecurity business unit is expected to be lower than the outlook provided during the last-reported quarter, primarily due to certain large government deals shifting to fiscal 2024. The company has witnessed an elongation in deal cycles in the government vertical, like additional deal reviews and approvals.
Owing to the above-mentioned challenges, the company has taken proactive steps in the fourth quarter to balance investments and costs and achieve profitable growth. The company will report fourth-quarter earnings and will provide fiscal 2024 guidance on Mar 30, 2023.
Zacks Rank & Stocks to Consider
BlackBerry currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Some better-ranked stocks in the broader technology space are Arista Networks (ANET - Free Report) , Perion Network (PERI - Free Report) and Pegasystems (PEGA - Free Report) , each presently sporting a Zacks Rank #1.
The Zacks Consensus Estimate for Arista Networks 2023 earnings is pegged at $5.79 per share, rising 11.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.2%. Shares of ANET have increased 22.9% in the past year.
The Zacks Consensus Estimate for Perion’s 2023 earnings is pegged at $2.69 per share, rising 16% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
Perion’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 31.7%. Shares of PERI have increased 76.4% in the past year.
The Zacks Consensus Estimate for Pegasystems 2023 earnings is pegged at $1.31 per share, rising 111.3% in the past 60 days.
Pegasystems earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average surprise being 11.2%. Shares of the company have declined 40% in the past year.