What to Expect When BlackBerry Reports Tuesday

BlackBerry Ltd. (NYSE: BB) is scheduled to release its fiscal second-quarter financial results before the markets open on Tuesday. Wall Street consensus estimates call for a net loss of $0.01 per share and $265.7 million in revenue. The same period of last year reportedly had $0.04 in earnings per share on $214 million in revenue.

In the prior quarter, the firm saw 23% revenue growth year over year. Also, BlackBerry posted a record quarterly high in Software and Services revenue of $260 million, which was an increase of 45% year over year.

First-quarter recurring software and services revenue (excluding IP licensing and professional services) was above 90% and gross margin was 75%.

At that time, management said that it was off to a good start to achieve its outlook for fiscal 2020. CEO John Chen said that the firm is ahead of schedule in its Cylance integration, while investing in the right opportunities to drive long-term growth and profitability for BlackBerry.

Excluding Monday’s move, BlackBerry had underperformed the broad markets, with the stock up only 6% year to date. In the past 52 weeks, the stock was actually down 26%.

A few analysts weighed in on BlackBerry ahead of the results:

  • Macquarie has a Hold rating and an $11 price target.
  • Scotiabank has a Buy rating with a $10 price target.
  • Raymond James rates it at Market Perform with $10.50 target.
  • RBC’s Sector Perform rating comes with a $9 target price.
  • Canaccord Genuity has a Hold rating and a $9 target price.

Shares of BlackBerry traded down about 1% at $7.44 on Monday, in a 52-week range of $6.57 to $12.00. The consensus price target is $10.34.