Institutional + Funds have grown recent stakes 5% Rush on BB is nigh
BlackBerry Limited: Headquartered in Waterloo, Canada, BlackBerry provides intelligent security software and services to enterprises and governments around the world. The company uses machine learning and artificial intelligence (AI) to provide cutting-edge solutions for cybersecurity, safety and data privacy. BlackBerry is a well-known name in the areas of endpoint security and management, encryption and embedded systems.
The company recently reported strong fourth-quarter fiscal 2024 results driven by revenue growth across IoT and Cybersecurity divisions. Revenues from the Cybersecurity business totaled $92 million, up 5% year over year. Revenues were driven by solid momentum in the Spark product group, which includes Cylance and UEM.
Revenues from the IoT business totaled $66 million, up 25% year over year. The uptick was caused by solid demand for the company’s solution in the automotive market and robust QNX development seat revenues. The rapid adoption of the QNX platform in the General Embedded market is a tailwind. QNX royalty backlog at the end of the fourth quarter was $815 million.
The company anticipates to report positive operating cash flow and adjusted EBITDA for the fiscal 2025 owing to various cost reductions. The company expects fiscal 2025 total revenues in the range of $586-$616 million.
However, the company expects fiscal first-quarter IoT revenues to be affected by material delays in software-defined vehicle programs. Also, ongoing budget constraints by some of its leading government customers amid unfavorable macroeconomic backdrop is a major headwind.
The company plans to separate the IoT and Cybersecurity businesses into standalone entities but will no longer pursue an IPO of the IoT business.
BB sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BB 2024 EPS has improved to a loss of 3 cents from a loss of 5 cents in the past 60 days.
BlackBerry’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing in the remaining quarter. The average earnings surprise is pegged at 130%.