Categories Earnings, Technology

Earnings preview: BlackBerry to post upbeat Q3 results

The once-thriving smartphone maker BlackBerry (BB) is set to release its third-quarter earnings results on Thursday before the bell. The transition from a device maker to a software services provider has taken considerable steps forward and the efforts are due to shower its yield in the upcoming quarters.

Analysts, on average, expect BlackBerry to post earnings of $0.02 per share on revenue of $214.45 million for the third quarter. In comparison, during the previous year quarter, the company reported a profit of $0.03 per share on revenue of $235 million. Majority of the analysts recommended a “hold” rating on the stock with an average price target of $11.54.

The company is depending heavily on mobile security and enterprise software as it forms a major part of the company’s new area of operation. BlackBerry is also venturing into the emerging fields of the internet of things (IoT) and autonomous driving. This is the company’s strategy to the transition plans and growth.

LIVE NOW: BlackBerry Q3 2019 results

It is expected that the results will be driven by both its BlackBerry Technology Solutions and Enterprise Software and Services businesses growth. The software and services business is likely to account for about three-fourths of total revenue in the third quarter.

BlackBerry recovery gains steam; Q2 earnings beat estimates

For the second quarter, the company posted a 126% jump in earnings helped by lower expenses and a decline in income tax provision. Revenues dropped 12% due to a decrease in revenues from enterprise software and services, handheld devices, and service action fees.

For the fiscal year 2019, BlackBerry has expected its total software and services billings growth to be double-digits. Software and services revenue growth is predicted to be between 8% and 10% year-over-year. Adjusted earnings and free cash flow are anticipated to be positive for the full year.

Shares of BlackBerry opened higher on Tuesday and remained in the green territory. The stock has fallen over 33% in the year so far and over 27% in the past three months.

 

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

What awaits MongoDB (MDB) after the much-awaited turnaround?

MongoDB, Inc. (NASDAQ: MDB), the tech firm that pioneered a new method for creating databases, enables developers to work with high volumes of varied data effortlessly. The company this week

Earnings: A snapshot of GameStop’s Q3 2022 financial performance

GameStop Corp. (NYSE: GME) reported a narrower net loss for the third quarter of 2022 despite the gaming company’s sales decreasing year-over-year. The company reported a net loss of $94.7 million

Here’s why Signet Jewellers (SIG) is confident about its long-term growth opportunity

Shares of Signet Jewelers Limited (NYSE: SIG) were up 5% on Wednesday. The stock has gained 32% over the past three months. A day ago, the company delivered better-than-expected earnings

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top