What to Expect When BlackBerry Releases Q4 and Fiscal-Year Results

In morning trading Wednesday, the Dow was up 0.73%, the S&P 500 up 1.04% and the Nasdaq up 1.37%.

After U.S. markets closed Tuesday, Lululemon reported quarterly results that beat consensus estimates for earnings per share (EPS) and revenue. The yoga pants maker also issued upside EPS and revenue guidance for the current quarter and for fiscal 2024, which ends next January. Shares traded up more than 15% early Wednesday.

Micron missed consensus estimates on both the top and bottom lines and issued current-quarter revenue guidance in line with expectations but EPS guidance well short of the consensus forecast. Executives also said that customer inventory surpluses are shrinking and that the supply-demand balance is improving. Shares traded up about 7.7% Wednesday morning.

Before markets opened on Wednesday, Paychex reported better-than-expected EPS and revenue. The company also raised the low end of fiscal 2023 revenue guidance. Shares traded up 1.9%.

EVgo and Manchester United will report quarterly results before U.S. markets open on Thursday morning, and look for BlackBerry Ltd. (NYSE: BB) to share its latest results later in the day.

BlackBerry shares have tumbled by about 50% over the past 12 months. Since posting a 52-week low late in December, however, the stock has added 20%, and most of that in 2023.

Last week, after a sale of the company’s patents to Catapult IP Innovations fell through, BlackBerry sold its mobile device patents to Malikie Innovations, a new subsidiary of Dublin-based Key Patent Innovations. The transaction calls for a cash payment of $170 million and another $30 million within three years. BlackBerry will receive royalty payments capped at an additional $700 million.

Of nine brokerages covering the stock, three have a Sell rating, five rate it at Hold and the other one has a Strong Buy rating. At a recent share price of around $3.80, the upside potential to a median price target of $4.94 is 8.9%. At the high price target of $4.94, the upside potential is 30%.

Fiscal fourth-quarter revenue is forecast at $120.97 million, which would be down 10.7% sequentially and by 18.4% year over year. BlackBerry is expected to post an adjusted loss per share of $0.07, compared to the prior quarter’s per-share loss of $0.05 and worse EPS of $0.01 in the year-ago quarter. For the 2023 fiscal year that ended in February, the company is forecast to post a loss per share of $0.22, compared with a loss of $0.10 per share a year ago. Revenue is forecast to drop by 7.6% to $663.18 million.

BlackBerry is not expected to post a profit in 2023, 2024 or 2025. The enterprise value to sales multiple for 2023 is 3.4, while for 2024 the multiple is 3.3 and for 2025 it is 2.6. The stock’s 52-week trading range is $3.17 to $7.97. BlackBerry does not pay a dividend. Total shareholder return for the past year is negative 50.07%.

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