Blackberry Limited (NYSE: BB) has confirmed the release date for its fiscal Q3 2022 earnings release, which will be on Thursday, December 16, 2021, before markets open.
What to look for
The cybersecurity and services firm has seen its stock gain around 21% over the past month outperforming the sector gain of 8.22%. Ahead of its earnings releases, investors are expecting strength from the company.
Earnings: Stockearning’s Estimated EPS for Q3 2022 will be a loss of $0.06 per share, representing a YoY decline in earnings of 400%. For the full year, the company anticipates a loss per share of $0.2, representing a drop of 211.11%. Historical EPS Performance shows that the company has in the last 12 quarters beat estimates ten times (83%) and matched estimates twice (16%), and has not missed earnings estimates. In Q2 2022, the company had an EPS loss of $0.08 relative to estimates of a loss of $0.09 per share.
Revenue: The company expects to generate revenue of $734 million for the full year, representing a YoY decline of 20.13%. In the last quarter, the company had revenue of $175 million relative to analyst estimates of $164.28 million. The revenue was down 32.4% YoY.
Stock movement: Since the last earnings release, BlackBerry stock has lost 6.5% of its value. BlackBerry shares have been DOWN 11 times out of the past 19 quarters following the earnings release. So, the historical price reaction suggests a 57% probability of the share price going DOWN once BlackBerry releases fiscal Q3 2022 earnings. According to the Stockearning algorithm, the predicted first-day move is 10%, while the predicted move on the seventh day is 9%.
What analysts are saying
TD Securities analyst Daniel Chan raised his target price for the stock from $8.5 to $9 but maintained a “Sell” rating on the stock. Chan considered the Q2 results a low-quality beat considering patents are almost being sold. The price target raise reflects the patent sale, and the analyst has "very low confidence" in the $1 billion valuation for the patent portfolio but still wanted to have a higher valuation relative to the $460 million previously assigned. Chan will be interested in the shares once the chip shortage uncertainty clears and the company's performance indicators like annual recurring revenue improve.
Recently, Canaccord Genuity analyst T Michael Walkley upgraded the stock from "Sell" to "hold" but kept his price target of $10. Walkley sees “levers for future growth” in the company’s cybersecurity business as BlackBerry looks to take endpoint security share. In a note to investors, Walkley said that the segment is expected to accelerate growth considering BlackBerry's differentiated AI-driven data lake approach that drives proactive prevention. In addition, the analyst believes the company's services and software fundamentals will improve in throughout fiscal 2022 and that the company is "turning the corner."
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