Shares of BlackBerry (BB) are down 10% after the Canadian technology company reported financial results that fell short of Wall Street’s expectations.
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The former smartphone maker turned cybersecurity firm posted a net loss of -$7.4 million for its Fiscal fourth quarter. While that was an improvement over a loss of -$56.2 million a year earlier, it showed the company is still not profitable.
The company, which keeps its books in U.S. dollars, said its loss amounted to -$0.01 a share for the quarter ended Feb. 28. The loss per share was basically inline with analyst consensus forecasts. Revenue for the quarter totaled $141.7 million, down 7% from $152.9 million in the same quarter last year.
Source: Main Street Data
Results Breakdown
Among its various units, BlackBerry reported that its secure communications revenue in the quarter amounted to $67.3 million, down from $71.6 million a year ago. QNX revenue in the period totaled $65.8 million, down slightly from $65.9 million the previous year.
Licensing revenue at BlackBerry was $8.6 million, down 44% from $15.4 million in the same quarter last year. BlackBerry has struggled for more than a decade to transition away from its original business as a maker of smartphones and into cybersecurity and Internet of Things (IoT) technologies. BB stock has declined 52% over the last three years and is frequently treated as a meme stock.
Is BB Stock a Buy?
The stock of BlackBerry has a consensus Moderate Buy among three Wall Street analysts. That rating is based on one Buy and two Hold recommendations issued in the last three months. The average BB price target of $5.25 implies 54.87% upside from current levels.
