BlackBerry Q3 Results Beat Top And Bottomline Estimates, Company Issues Guidance, Stock Sinks

BlackBerry Ltd BB shares are trading lower in Wednesday's after-hours session after the company reported third-quarter financial results.

What To Know: BlackBerry reported quarterly earnings of one cent per share which exceeded the Street's estimate of losses of three cents per share.

Revenue clocked in at $175.00 million, beating the analyst consensus estimate of $173.53 million, a 3.55% increase over sales of $169.00 million the same period last year.

A look at the company's Cybersecurity segment revealed revenue of $114 million, which marked a 44% sequential and 8% year-over-year increase. Also, Cybersecurity ARR was $273 million while billings for the segment were $109 million.

The company reported total cash, cash equivalents, short-term and long-term investments of $271 million, as well.

Total BlackBerry revenue is anticipated to be between $150 million and $159 million, versus estimates of $200.37 million.

"This was a good quarter for BlackBerry. Our IoT business delivered solid revenue growth and continued its impressive design win momentum. We showed particular strength in Automotive, especially in ADAS where we continue to expand our market position," said John J. Giamatteo, CEO of BlackBerry.

"We also saw a strong quarter for the Cybersecurity business, securing large strategic deals with leading government agencies that helped drive strong sequential revenue growth and margin expansion. Work has commenced to fully separate and significantly rightsize our businesses, and we expect to further reduce operating cashflow usage in Q4."

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BB Price Action: Shares of BB were down 2.20% at $4.01 in the after-hours session at the time of publication, according to Benzinga Pro.

Photo: Courtesy BlackBerry