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Factors to Note Ahead of BlackBerry's Q2 Earnings Release
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BlackBerry Limited (BB - Free Report) is scheduled to report second-quarter fiscal 2025 results on Sept. 26.
The Zacks Consensus Estimate is pegged at a loss of 3 cents per share, unchanged in the past 60 days. The company reported a loss per share of 4 cents in the prior-year quarter.
In the last reported quarter, BB’s adjusted loss per share of 3 cents was narrower than the company’s estimate of a loss of 4-6 cents. It reported non-GAAP earnings of 6 cents per share in the year-ago quarter. The Zacks Consensus Estimate was pegged at a loss of 4 cents per share. Quarterly revenues were $144 million compared with the prior-year quarter’s figure of $373 million. However, the top line surpassed the company’s guidance of $130-$138 million. Software product revenues contributed 85% to total revenues, while professional services contributed 15%.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the other, with the average earnings surprise of 81.25%.
BB’s performance is expected to have benefited from strength in the automotive segment, particularly solid demand for its solutions across the advanced driver assistance systems market and digital cockpit domain.
Apart from Auto, the rapid adoption of the QNX platform in the General Embedded market is a positive factor. Continued design win momentum is anticipated to have further strengthened the QNX royalty backlog. Improving revenues from royalties and professional services is likely to have acted as a tailwind.
Steady momentum in the SecuSmart business, as well as improving annual recurring revenues are likely to have benefited the Cybersecurity business. Steady demand for Blackberry’s Cylance is another tailwind.
The company expects fiscal second-quarter revenues to be in the range of $136-$144 million. For the Cybersecurity business, revenues are estimated to be in the band of $82-$86 million.
For IoT business, revenues are now projected in the band of $50-$54 million. Though management expects an improvement in development seat license revenues in the second quarter, the headwinds faced by automakers in delivering software development programs are likely to have remained an overhang on the QNX business. Licensing & Other revenues are expected to be approximately $4 million.
What Our Model Says for BlackBerry
Our proven model does not conclusively predict an earnings beat for BlackBerry this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
BlackBerry currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in this season.
ACN is slated to release fourth-quarter 2024 earnings on Sept. 26. The Zacks Consensus Estimate for ACN’s to-be-reported quarter’s earnings and revenues is pegged at $2.77 per share and $16.33 billion, respectively.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +0.62% and a Zacks Rank #3. COST is scheduled to report fourth-quarter 2024 earnings on Sept. 26. The Zacks Consensus Estimate for COST’s to-be-reported quarter’s earnings and revenues is pegged at $5.04 per share and $79.82 billion, respectively.
Carnival Corporation & plc (CCL - Free Report) has an Earnings ESP of +1.71% and a Zacks Rank #3 at present. CCL is set to post third-quarter fiscal 2024 results on Sept. 30. The Zacks Consensus Estimate for CCL’s to-be-reported quarter’s earnings and revenues is pegged at $1.16 per share and $7.81 billion, respectively.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Factors to Note Ahead of BlackBerry's Q2 Earnings Release
BlackBerry Limited (BB - Free Report) is scheduled to report second-quarter fiscal 2025 results on Sept. 26.
The Zacks Consensus Estimate is pegged at a loss of 3 cents per share, unchanged in the past 60 days. The company reported a loss per share of 4 cents in the prior-year quarter.
In the last reported quarter, BB’s adjusted loss per share of 3 cents was narrower than the company’s estimate of a loss of 4-6 cents. It reported non-GAAP earnings of 6 cents per share in the year-ago quarter. The Zacks Consensus Estimate was pegged at a loss of 4 cents per share. Quarterly revenues were $144 million compared with the prior-year quarter’s figure of $373 million. However, the top line surpassed the company’s guidance of $130-$138 million. Software product revenues contributed 85% to total revenues, while professional services contributed 15%.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the other, with the average earnings surprise of 81.25%.
BlackBerry Limited Price and EPS Surprise
BlackBerry Limited price-eps-surprise | BlackBerry Limited Quote
Factors at Play for BB’s Fiscal Second Quarter
BB’s performance is expected to have benefited from strength in the automotive segment, particularly solid demand for its solutions across the advanced driver assistance systems market and digital cockpit domain.
Apart from Auto, the rapid adoption of the QNX platform in the General Embedded market is a positive factor. Continued design win momentum is anticipated to have further strengthened the QNX royalty backlog. Improving revenues from royalties and professional services is likely to have acted as a tailwind.
Steady momentum in the SecuSmart business, as well as improving annual recurring revenues are likely to have benefited the Cybersecurity business. Steady demand for Blackberry’s Cylance is another tailwind.
The company expects fiscal second-quarter revenues to be in the range of $136-$144 million. For the Cybersecurity business, revenues are estimated to be in the band of $82-$86 million.
For IoT business, revenues are now projected in the band of $50-$54 million. Though management expects an improvement in development seat license revenues in the second quarter, the headwinds faced by automakers in delivering software development programs are likely to have remained an overhang on the QNX business. Licensing & Other revenues are expected to be approximately $4 million.
What Our Model Says for BlackBerry
Our proven model does not conclusively predict an earnings beat for BlackBerry this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
BlackBerry currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in this season.
Accenture plc (ACN - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACN is slated to release fourth-quarter 2024 earnings on Sept. 26. The Zacks Consensus Estimate for ACN’s to-be-reported quarter’s earnings and revenues is pegged at $2.77 per share and $16.33 billion, respectively.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +0.62% and a Zacks Rank #3. COST is scheduled to report fourth-quarter 2024 earnings on Sept. 26. The Zacks Consensus Estimate for COST’s to-be-reported quarter’s earnings and revenues is pegged at $5.04 per share and $79.82 billion, respectively.
Carnival Corporation & plc (CCL - Free Report) has an Earnings ESP of +1.71% and a Zacks Rank #3 at present. CCL is set to post third-quarter fiscal 2024 results on Sept. 30. The Zacks Consensus Estimate for CCL’s to-be-reported quarter’s earnings and revenues is pegged at $1.16 per share and $7.81 billion, respectively.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.