BlackBerry Limited (BB Stock) will release Q1 2024 earnings results on June 28, 2023; investors hope for a favorable report and a rally ahead. Experts predict that BlackBerry will report a loss of at least $0.05 per share, with revenue being $160.35 million. Comparing this scenario to Q1 2023, they lost $0.05 per share while revenue was $168 million.
BlackBerry Limited (BB Stock) – Earnings Expectation & Financial Analysis
The BB share price dropped 6.81% last week and 7.71% monthly. Experts have predicted a massive growth of around 54% in sales of its cybersecurity business by 2026. BlackBerry, the security software and service provider, predicts that its revenue in 2026 will be between $880 Million and $960 million.
BB’s gross margin for its unit of Cybersecurity is expected to dwell between 400 bps to 600 bps by 2026. In December 2022, the company predicted that its revenue would be relatively flat in the first six months of 2023 and that it could pick up the pace in the later half of the year.
BlackBerry Limited reported its last earnings on March 30, 2023, where its revenue failed to beat the estimated $153.957 Million by 2.78% as it reported a revenue of $149.67 Million—thereby resulting in a surprise shortage of $4.287 million. At the same time, the company announced its partnership with Adobe to provide secure mobile solutions.
At press time, BB Stock is trading at $4.7900 with a drop of 3.62%; previous close and open were at $4.97 and $4.88, respectively. With an average volume of 5.54 million shares, the market cap is $2.78 billion. Analysts placed a price target at $5.50 with a 14.8% upside.
The company seems optimistic about its revenue in 2024 and expects it to fall in the range between $665 Million and $700 Million. During previous earnings, the company reported a loss of around $0.02 per share, while the quarterly drop in revenue was 18.4% year-over-year (YoY), which resulted in a revenue of $151 Million.
For the earnings report scheduled on June 28, 2023, BlackBerry expects the revenue growth to be between 6.6% to 12.2%. Data suggests that the company has been operating at a loss for the last few years. It was once a world leader in mobile phones and slowly vanished from the arena.
BlackBerry Limited (BB Stock) – Candle Exploration
Since the start of 2023, BB’s share price has been moving in an upward-moving trajectory, which provides positivity in the short term. The slightly northbound trajectory of EMA and the RSI of 39.41 provides weak signals. With the earnings report arriving on June 28, 2023, the price could test R1 and cross it to meet R2.
If the earnings report is dissatisfactory, the price will test the trend line before breaking S1. However, the ascending trend line also acts as a strong support, so the possibility of its breakthrough is slim. Nonetheless, the price action might only rally as expected if the company enters the greens and is out of the red zone of loss-making.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/26/blackberry-ltd-bb-stock-earnings-on-june-28-expectations/