BlackBerry Stock Falls as Revenue Misses Estimates

- Advertisement -


Chris Ratcliffe/Bloomberg

- Advertisement -

Shares of BlackBerry traded lower in premarket trading Friday after the Canadian cybersecurity company posted fourth-quarter revenue that missed analysts’ estimates.

- Advertisement -

BlackBerry (ticker: BB), which used to make mobile phones but has shifted to selling security software, reported adjusted earnings in the period of 1 cent a basic share, better than estimates that called for a loss of 5 cents. Revenue in the period of $185 million, however, missed Wall Street forecasts of about $187 million.

Cybersecurity revenue in the quarter of $122 million was flat with a year earlier.

- Advertisement -

BlackBerry said its cybersecurity business saw another quarter of billings growth. and it expects “billings momentum” this year.

Sales at the company’s internet-of-things segment were $52 million, up from $38 million a year earlier. Chief Executive Officer John Chen said it was the IoT segment’s first quarter of more than $50 million of revenue since the start of the pandemic, “despite the ongoing challenges for the auto industry.”

Chen added on a conference call that “challenges for production remain.”

“Major OEMs have indicated continuous supply chain headwinds, particular chip shortages, although they expected the situation to largely improve as the year progresses,” Chen said. “The conflict in Ukraine has added a further disruption to an already challenging environment for the auto industry, and we will continue to monitor that impact.”

The stock fell 2.8% to $7.25 in premarket trading. Following the close of trading Thursday, BlackBerry shares have fallen 20% in 2022.

Two weeks ago, BlackBerry stock was upgraded to Sector Perform from Underperform by analysts at RBC Capital Markets, who said the current valuation made it a more attractive bet. They maintained their $7 price target on the shares.

Write to Joe Woelfel at [email protected]

,

Credit: www.marketwatch.com /

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox