Here's How BlackBerry is Placed Ahead of Q1 Earnings

BlackBerry Limited BB is scheduled to report first-quarter fiscal 2025 results on Jun 26.

The Zacks Consensus Estimate is pegged at a loss of 4 cents per share, unchanged in the past 60 days. The company reported earnings per share of 6 cents in the prior year quarter.

In the last reported quarter, BB's adjusted EPS was 3 cents. The company incurred a non-GAAP loss of 2 cents in the year-ago quarter. The Zacks Consensus Estimate was pegged at a loss of 3 cents. Total revenues were $173 million compared with the prior-quarter revenues of $151 million. Revenues benefited from solid demand for its solution across the advanced driver assistance systems market.

The company's earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the other. The average earnings surprise stands at 130%.

BlackBerry Limited Price, Consensus and EPS Surprise

BlackBerry Limited price-consensus-eps-surprise-chart | BlackBerry Limited Quote

Factors to Note

Steady demand for its cybersecurity solutions (especially for Spark product group, which includes Cylance and UEM) is likely to have acted as a tailwind.

BB's performance is expected to have benefited from strength in the automotive segment, particularly solid demand for its solutions across the advanced driver assistance systems market and digital cockpit domain.

Rapid adoption of the QNX platform in the Auto and General Embedded market is a positive factor. Continued design win momentum is anticipated to further strengthen the QNX royalty backlog.

Management expects fiscal first-quarter total revenues in the range of $130-$138 million.

For the Cybersecurity business, revenues are estimated in the range of $78-$82 million. The company expects revenues to be affected due to the ongoing budget constraints by some of its leading government customers.

For IoT business, revenues are now projected in the band of $48-$52 million. The company's revenues are likely to have been affected by material delays in software-defined vehicle programs, amid an unfavorable macroeconomic backdrop. Licensing & Other revenues are expected to be approximately $4 million.

What Our Model Say

Our proven model does not conclusively predict an earnings beat for BlackBerry this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

BlackBerry has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.

Stocks to Consider

Here are some stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.

General Mills, Inc. GIS has an Earnings ESP of +5.58% and currently sports a Zacks Rank of 3.
GIS is set to announce quarterly figures on Jun 26. The Zacks Consensus Estimate for GIS' to-be-reported quarter's earnings and revenues is pegged at 99 cents per share and $4.87 billion, respectively. Shares of GIS have lost 18% of their value in the past year.
The Bank of New York Mellon Corporation BK has an Earnings ESP of +2.27% and presently carries a Zacks Rank #3. BK is slated to release quarterly numbers on Jul 12.
The Zacks Consensus Estimate for BK's to-be-reported quarter's earnings and revenues is pegged at $1.41 per share and $4.53 billion, respectively. Shares of BK have gained 36.7% in the past year.
Northern Trust Corporation NTRS has an Earnings ESP of +2.56% and currently carries a Zacks Rank #3. NTRS is scheduled to report quarterly earnings on Jul 17.
The Zacks Consensus Estimate for NTRS' to-be-reported quarter's earnings and revenues is pegged at $1.76 per share and $1.84 billion, respectively. Shares of NTRS have surged 15.3% in the past year.

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