Here's What to Expect From BlackBerry's (BB) Q3 Earnings

BlackBerry BB is scheduled to report third-quarter fiscal 2024 results on Dec 20.

The Zacks Consensus Estimate is pegged at a loss of 1 cent per share, unchanged over the past 60 days. The company had reported a loss of 5 cents in the prior-year quarter.

In the last reported quarter, the company reported an adjusted loss per share of 4 cents. In the prior-year quarter, it incurred a non-GAAP loss of 5 cents. The Zacks Consensus Estimate was pegged at a loss of 2 cents.

Quarterly total revenues were $132 million compared with the prior quarter’s $168 million. The company’s revenues came in line with the Zacks Consensus Estimate.

BlackBerry Limited Price and EPS Surprise

BlackBerry Limited Price and EPS Surprise

BlackBerry Limited price-eps-surprise | BlackBerry Limited Quote

Factors to Note

The company’s performance in the third quarter is likely to have benefited from the uptake of QNX in the medical and industrial verticals apart from the automotive sector. In the last reported quarter, the company’s QNX platform secured 20 new design wins in Auto and seven in the General Embedded Market.

Rising demand for its cybersecurity solutions among government customers is likely to have boosted the top line. In November, the company announced a long-term software and services agreement with the Government of Malaysia to strengthen Malaysia's cybersecurity amid rising cyber-attacks.

In October, BlackBerry announced that the U.S. Department of Homeland Security has granted it a seven-year Indefinite Delivery, Indefinite Quantity contract. The contract aims to create and maintain a Super Enterprise for Personnel Emergency Notification System.

Also, the company announced significant advancements in Unified Endpoint Management (UEM), BlackBerry UEM at the edge and BlackBerry UEM for the Internet of Things (IoT). It will likely help to enhance productivity and security by bringing workloads closer to end users.

BlackBerry noted that the IoT business division is gaining from opportunities in a vast market, which is likely to benefit from multi-year secular trends. However, certain automakers are postponing software development programs and production schedules in the short term, which are headwinds.

Also, the Cybersecurity division has encountered prolonged sales cycles, particularly within the government sector. Also, delays in finalizing significant deals are anticipated to impact revenues recognized for the to-be-reported quarter.

What Our Model Says

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.

BlackBerry has an Earnings ESP of 0.00% and a Zacks Rank #2. 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 this time around.

Micron Technology MU has an Earnings ESP of +0.63% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Micron Technology is scheduled to release first-quarter fiscal 2024 results on Dec 20. The Zacks Consensus Estimate for MU’s earnings per share (EPS) is pegged at a loss of $1.00. Shares of MU have gained 57.9% in the past year.

FedEx Corporation FDX has an Earnings ESP of +3.99% and a Zacks Rank #3 at present.

FedEx is scheduled to release second-quarter fiscal 2024 results on Dec 19. The Zacks Consensus Estimate for FDX’s EPS is pegged at $4.14. Shares of FDX have surged 61.4% in the past year.

Heico Corporation HEI has an Earnings ESP of +9.47% and a Zacks Rank #3 at present.

Heico is scheduled to release fourth-quarter results on Dec 18. The Zacks Consensus Estimate for HEI’s EPS is pegged at 70 cents. Shares of HEI have gained 19.6% in the past year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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