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BlackBerry (BB) Q4 Earnings Beat Estimates, Revenues Up Y/Y
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BlackBerry Limited (BB - Free Report) reported fourth-quarter fiscal 2024 (ended Feb 29) adjusted earnings per share (EPS) of 3 cents. In the year-ago quarter, it incurred a non-GAAP loss of 2 cents. The Zacks Consensus Estimate was pegged at a loss of 3 cents.
Quarterly total revenues were $173 million compared with the prior-quarter revenues of $151 million. Revenues benefited from solid demand for its solution across the advanced driver assistance systems market.
The company expects fiscal first-quarter total revenues in the range of $130-$138 million. For the Cybersecurity business, revenues are estimated to be in the range of $78-$82 million for the fiscal first quarter. The company expects revenues to be affected due to the ongoing budget constraints by some of its leading government customers.
BlackBerry Limited Price, Consensus and EPS Surprise
For the Internet of Things (IoT) business, revenues are now projected to be in the band of $48-$52 million. The company’s revenues are likely to be affected by material delays in software-defined vehicle programs. Licensing & Other revenues are expected to be approximately $4 million.
The company expects fiscal 2025 total revenues in the range of $586-$616 million. For the Cybersecurity business, revenues are estimated to be in the range of $350-$365 million. For the IoT business, revenues are now projected to be in the band of $220-$235 million. Licensing & Other revenues are expected to be approximately $16 million.
Following the announcement, the company’s shares rallied 6.4% in the pre-market trading on Apr 4, 2024. The stock has lost 39.4% in the past year against the sub-industry’s growth of 43.8%.
Image Source: Zacks Investment Research
Quarter in Details
Revenues from the Cybersecurity business totaled $92 million, up 5% year over year. Revenues were driven by solid momentum in the Spark product group, which includes Cylance and UEM.
Revenues from the IoT business totaled $66 million, up 25% year over year. The uptick was caused by solid demand for the company’s solution in the automotive market and robust QNX development seat revenue.
Licensing and Other contributed $15 million, up from $10 million a year ago.
Other Details
Gross profit increased 29% from the year-ago quarter to $129 million. Gross margin improved to 74.6% from 66.2% reported in the prior-year quarter.
However, non-GAAP gross margin increased 800 basis points to 75% on a year-over-year basis.
Total non-GAAP operating expenses were $113 million, down 4.2%. Adjusted operating income was $16 million against an adjusted operating loss of $17 million a year ago.
Adjusted EBITDA came in at $21 million against an adjusted EBITDA loss of $12 million reported in the year-ago quarter.
Cash Flow & Liquidity
For the quarter that ended on Feb 29, 2024, BlackBerry used $15 million of net cash in operating activities compared with $7 million a year ago.
As of Feb 29, 2024, BlackBerry had $175 million in cash and cash equivalents.
Zacks Rank & Stocks to Consider
At present, BlackBerry carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Synopsys’ 2024 EPS has decreased 0.4% in the past 60 days to $13.36. SNPS’s long-term earnings growth rate is 17.5%.
Synopsys’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 4.1%. SNPS shares have risen 50.4% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2024 EPS has moved up 1.9% in the past 60 days to $5.30. WWD’s long-term earnings growth rate is 15.6%.
Woodward’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 27.2%. WWD shares have risen 62.3% in the past year.
The Zacks Consensus Estimate for Perion Network’s fiscal 2024 EPS has improved 0.6% in the past 60 days to $3.34. PERI’s long-term earnings growth rate is 22%.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 12.9%. PERI shares have lost 47.7% in the past year.
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BlackBerry (BB) Q4 Earnings Beat Estimates, Revenues Up Y/Y
BlackBerry Limited (BB - Free Report) reported fourth-quarter fiscal 2024 (ended Feb 29) adjusted earnings per share (EPS) of 3 cents. In the year-ago quarter, it incurred a non-GAAP loss of 2 cents. The Zacks Consensus Estimate was pegged at a loss of 3 cents.
Quarterly total revenues were $173 million compared with the prior-quarter revenues of $151 million. Revenues benefited from solid demand for its solution across the advanced driver assistance systems market.
The company expects fiscal first-quarter total revenues in the range of $130-$138 million. For the Cybersecurity business, revenues are estimated to be in the range of $78-$82 million for the fiscal first quarter. The company expects revenues to be affected due to the ongoing budget constraints by some of its leading government customers.
BlackBerry Limited Price, Consensus and EPS Surprise
BlackBerry Limited price-consensus-eps-surprise-chart | BlackBerry Limited Quote
For the Internet of Things (IoT) business, revenues are now projected to be in the band of $48-$52 million. The company’s revenues are likely to be affected by material delays in software-defined vehicle programs. Licensing & Other revenues are expected to be approximately $4 million.
The company expects fiscal 2025 total revenues in the range of $586-$616 million. For the Cybersecurity business, revenues are estimated to be in the range of $350-$365 million. For the IoT business, revenues are now projected to be in the band of $220-$235 million. Licensing & Other revenues are expected to be approximately $16 million.
Following the announcement, the company’s shares rallied 6.4% in the pre-market trading on Apr 4, 2024. The stock has lost 39.4% in the past year against the sub-industry’s growth of 43.8%.
Image Source: Zacks Investment Research
Quarter in Details
Revenues from the Cybersecurity business totaled $92 million, up 5% year over year. Revenues were driven by solid momentum in the Spark product group, which includes Cylance and UEM.
Revenues from the IoT business totaled $66 million, up 25% year over year. The uptick was caused by solid demand for the company’s solution in the automotive market and robust QNX development seat revenue.
Licensing and Other contributed $15 million, up from $10 million a year ago.
Other Details
Gross profit increased 29% from the year-ago quarter to $129 million. Gross margin improved to 74.6% from 66.2% reported in the prior-year quarter.
However, non-GAAP gross margin increased 800 basis points to 75% on a year-over-year basis.
Total non-GAAP operating expenses were $113 million, down 4.2%. Adjusted operating income was $16 million against an adjusted operating loss of $17 million a year ago.
Adjusted EBITDA came in at $21 million against an adjusted EBITDA loss of $12 million reported in the year-ago quarter.
Cash Flow & Liquidity
For the quarter that ended on Feb 29, 2024, BlackBerry used $15 million of net cash in operating activities compared with $7 million a year ago.
As of Feb 29, 2024, BlackBerry had $175 million in cash and cash equivalents.
Zacks Rank & Stocks to Consider
At present, BlackBerry carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader technology space are Synopsys (SNPS - Free Report) , Woodward (WWD - Free Report) and Perion Network (PERI - Free Report) . Synopsys and Perion Network sport a Zacks Rank #1 (Strong Buy), while Woodward carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Synopsys’ 2024 EPS has decreased 0.4% in the past 60 days to $13.36. SNPS’s long-term earnings growth rate is 17.5%.
Synopsys’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 4.1%. SNPS shares have risen 50.4% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2024 EPS has moved up 1.9% in the past 60 days to $5.30. WWD’s long-term earnings growth rate is 15.6%.
Woodward’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 27.2%. WWD shares have risen 62.3% in the past year.
The Zacks Consensus Estimate for Perion Network’s fiscal 2024 EPS has improved 0.6% in the past 60 days to $3.34. PERI’s long-term earnings growth rate is 22%.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 12.9%. PERI shares have lost 47.7% in the past year.