BlackBerry Limited (NYSE: BB, TSX: BB) is set to report its third-quarter 2020 earnings results on Friday before the market opens. The bottom line is likely to be hurt by higher costs and expenses while the top line will be benefited by higher billings as well as licensing revenue.
The company could experience softness in its enterprise software and services (ESS) business due to the retooling of its salesforce. In the Licensing business, the second half of fiscal 2020 is likely to be stronger than the first half. The top-line growth is predicted to be backed by the possible double-digit growth in billings.
The margins are anticipated to increase driven primarily by Licensing and Cylance despite declines in Other and Internet of Things. The company could experience an increase in operating expenses due to costs associated with a direct IP licensing arrangement and higher salaries and benefits expenses.
Analysts expect the company’s earnings to drop by 60% to $0.02 per share while revenue will jump by 22% to $275.73 million for the third quarter. The company has surprised investors by beating analysts’ expectations thrice in the past four quarters. The majority of the analysts recommended a “hold” rating with an average price target of $7.65.
Read: Adobe Q4 earnings review
For the second quarter, BlackBerry slipped to a loss from a profit last year due to acquired intangible amortization expense, stock compensation expense as well as acquisition and integration charges. Total revenue grew by 16% year-over-year backed by higher licensing revenue.
For the full year 2020, the company expects adjusted revenue growth in the range of 23% to 25%, driven by a double-digit percentage increase in billings year-over-year and adjusted profitability. Adjusted Internet of Things revenue is now expected to be lower than the previous growth forecast of 12% to 16% in fiscal 2020.
Get access to timely and accurate verbatim transcripts that are published within hours of the event.
Most Popular
Microsoft (MSFT) reports higher revenue and profit for Q3 2024
Microsoft Corp. (NASDAQ: MSFT) on Thursday said its third-quarter 2024 earnings increased year-over-year, reflecting strong performance by the tech giant’s main operating segments. Third-quarter revenues came in at $61.86 billion,
GOOG, GOOGL Earnings: All you need to know about Alphabet’s Q1 2024 earnings results
Alphabet Inc. (NASDAQ: GOOG, GOOGL) reported its first quarter 2024 earnings results today. Revenues increased 15% year-over-year to $80.5 billion. Revenue growth was 16% in constant currency. Net income was
MRK Earnings: Merck Q1 2024 profit jumps on 9% revenue growth
Pharmaceutical company Merck & Co. Inc. (NYSE: MRK) reported a sharp increase in adjusted earnings for the first quarter of 2024, aided by an increase in revenues. First-quarter worldwide sales
