BlackBerry Beats Q3 Earnings Estimates, But Soft Guidance Keeps Shares In Check

BlackBerry Ltd BB reported third-quarter financial results after the market close on Thursday. Here’s a look at the key metrics from the quarter.

Q3 Earnings: BlackBerry reported third-quarter revenue of $162 million. The company reported third-quarter adjusted earnings of two cents per share, beating analyst estimates for a loss of one cent per share, according to Benzinga Pro.

IoT revenue was $62 million, up 13% year-over-year. Cybersecurity revenue totaled $93 million in the quarter, up 7% year-over-year. Licensing revenue came in at $7 million.

Total company gross margin was 74% in the quarter. Operating cash flow improved by $34 million year-over-year to $3 million. BlackBerry ended the quarter with $266 million in cash, cash equivalents and short- and long-term investments.

“BlackBerry achieved a significant inflection in its results this past quarter. Driven by a combination of strong revenue performance for both our Cybersecurity and IoT divisions, and continued focus on costs and efficiency, the company delivered stronger than expected profitability and a return to positive cash flow ahead of schedule,” said John Giamatteo, CEO of BlackBerry. 

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Guidance: BlackBerry expects fourth-quarter revenue of $126 million to $135 million versus estimates of $161.49 million. The company anticipates fourth-quarter IoT revenue of $60 million to $65 million, secure communications revenue of $62 million to $66 million and licensing and other revenue of approximately $4 million.

BlackBerry expects full-year revenue of $517 million to $526 million versus estimates of $603.12 million. The company anticipates full-year adjusted earnings to be somewhere between breakeven and a loss of two cents per share, versus estimates for a loss of two cents per share.

Management will further discuss the quarter on a call with investors and analysts at 5:30 p.m. ET.

BB Price Action: BlackBerry shares were up 0.17% in after hours, trading at $2.98 at the time of publication Thursday, according to Benzinga Pro.

Photo: Courtesy of BlackBerry.