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BlackBerry (BB) Gains 64.4% YTD: Will the Trend Continue?
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BlackBerry (BB - Free Report) witnessed strong momentum this year, with shares gaining 64.4% year to date compared with the sub-industry’s rise of 38.4%.
BlackBerry provides intelligent security software and services to enterprises and governments around the world. It offers devices and software platforms for managing security, mobility and communications among hardware, programs, mobile apps and the Internet of Things (IoT).
Image Source: Zacks Investment Research
Catalysts Behind the Price Surge
Let’s delve deeper to unearth the factors working in favor of this Zacks Rank #3 (Hold) stock.
The increase in share price is driven by the company’s robust financial performance. The company had an impressive performance in the first quarter of fiscal 2024.
The company reported adjusted earnings per share (EPS) of 6 cents against the prior-year quarter’s non-GAAP loss of 5 cents. The Zacks Consensus Estimate was pegged at a loss of 5 cents per share. Quarterly total revenues were $373 million compared with prior-quarter revenues of $168 million. The company beat the Zacks Consensus Estimate of $159.4 million.
BlackBerry’s QNX software is now installed in more than 235 million vehicles. Within the auto sector, increasing consolidation of digital cockpits and the adoption of advanced driver assist systems augur well for BlackBerry. In the first quarter, the company’s QNX platform secured seven new design wins in Auto and seven in the General Embedded Market.
The company recently outlined its long-term financial targets, which include achieving full-year positive non-GAAP EPS and cash flow beginning in fiscal 2025.
For IoT business (excluding IVY), revenues are projected in the range of $240-$250 million and $340-$370 million for fiscal 2024 and fiscal 2026, respectively.
The company expects growth in the total addressable market, endpoint security market and managed security services market to drive its Cybersecurity business. For Cybersecurity business, revenues are estimated in the range of $425-$450 million and $540-$590 million for fiscal 2024 and fiscal 2026, respectively.
Despite strong demand, the company's near-term prospects might be affected by global macroeconomic weakness and inflation. The company operates in a highly competitive and capital-intensive software business. This is likely to negatively impact the company’s performance.
The Zacks Consensus Estimate for Perion Network’s 2023 EPS has increased 5.6% in the past 60 days to $2.84. The company’s long-term earnings growth rate is 25%.
Perion Network’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.3%. Shares of PERI have risen 79.3% in the past year.
The Zacks Consensus Estimate for InterDigital’s 2023 EPS has increased 249% in the past 60 days to $8.08. The company’s long-term earnings growth rate is 13.9%.
InterDigital’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 170.9%. Shares of IDCC have rallied 44.3% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2023 EPS has improved 9.3% in the past 60 days to $3.75.
Blackbaud’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 10.4%. Shares of the company have risen 19% in the past year.
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BlackBerry (BB) Gains 64.4% YTD: Will the Trend Continue?
BlackBerry (BB - Free Report) witnessed strong momentum this year, with shares gaining 64.4% year to date compared with the sub-industry’s rise of 38.4%.
BlackBerry provides intelligent security software and services to enterprises and governments around the world. It offers devices and software platforms for managing security, mobility and communications among hardware, programs, mobile apps and the Internet of Things (IoT).
Image Source: Zacks Investment Research
Catalysts Behind the Price Surge
Let’s delve deeper to unearth the factors working in favor of this Zacks Rank #3 (Hold) stock.
The increase in share price is driven by the company’s robust financial performance. The company had an impressive performance in the first quarter of fiscal 2024.
The company reported adjusted earnings per share (EPS) of 6 cents against the prior-year quarter’s non-GAAP loss of 5 cents. The Zacks Consensus Estimate was pegged at a loss of 5 cents per share. Quarterly total revenues were $373 million compared with prior-quarter revenues of $168 million. The company beat the Zacks Consensus Estimate of $159.4 million.
BlackBerry’s QNX software is now installed in more than 235 million vehicles. Within the auto sector, increasing consolidation of digital cockpits and the adoption of advanced driver assist systems augur well for BlackBerry. In the first quarter, the company’s QNX platform secured seven new design wins in Auto and seven in the General Embedded Market.
The company recently outlined its long-term financial targets, which include achieving full-year positive non-GAAP EPS and cash flow beginning in fiscal 2025.
For IoT business (excluding IVY), revenues are projected in the range of $240-$250 million and $340-$370 million for fiscal 2024 and fiscal 2026, respectively.
The company expects growth in the total addressable market, endpoint security market and managed security services market to drive its Cybersecurity business. For Cybersecurity business, revenues are estimated in the range of $425-$450 million and $540-$590 million for fiscal 2024 and fiscal 2026, respectively.
Despite strong demand, the company's near-term prospects might be affected by global macroeconomic weakness and inflation. The company operates in a highly competitive and capital-intensive software business. This is likely to negatively impact the company’s performance.
Stocks to Consider
Some better-ranked stocks in the broader technology space are Perion Network (PERI - Free Report) , InterDigital (IDCC - Free Report) and Blackbaud (BLKB - Free Report) . Perion Network and InterDigital presently sport a Zacks Rank #1 (Strong Buy), whereas Blackbaud holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Perion Network’s 2023 EPS has increased 5.6% in the past 60 days to $2.84. The company’s long-term earnings growth rate is 25%.
Perion Network’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.3%. Shares of PERI have risen 79.3% in the past year.
The Zacks Consensus Estimate for InterDigital’s 2023 EPS has increased 249% in the past 60 days to $8.08. The company’s long-term earnings growth rate is 13.9%.
InterDigital’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 170.9%. Shares of IDCC have rallied 44.3% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2023 EPS has improved 9.3% in the past 60 days to $3.75.
Blackbaud’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 10.4%. Shares of the company have risen 19% in the past year.