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BlackBerry Limited (BB) earnings: will the rally last?

Royston Roche | 7:15 pm ET, 20 Dec 2018

BlackBerry Limited (BB) shares are trading at $7.58, up 3%. The company announced its quarterly earnings results today before the market opens--and it beat analysts’ forecasts.  It is also signaling its reinvention as a software company is taking hold.  Will today's rally last?

BlackBerry turned a profit of $59 million in the last quarter, which is a huge improvement compared to a loss of $275 million a year earlier. It earned five cents US a share, beating the average analyst estimate of two cents.  BlackBerry recorded $228 million in revenue, compared with the average analyst projection of $216 million.

Blackberry has recently announced an intention to buy an AI-based cybersecurity company Cylance for $1.4 billion.  Cylance's client base includes over 100 Fortune 500 clients.

Investors are showing interest in the company as they feel that the Cylance deal will be a game-changer. On the other hand, a few bearish investors worry about decelerating revenue growth. Last quarter’s revenue fell 10% to $214 million and earnings per share came at 4 cents compared to 5 cents for the same period last year.

What is the sentiment towards the BB stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is negative;
  • The long-term sentiment (9-12 months) is trending negative.  

Over the last month, BlackBerry Limited (BB) returned -11.05%. 

BlackBerry Limited (BB) forward P/E ratio is 54.94, and it’s high compared to its industry peers’ P/E ratios.

BlackBerry Limited (BB) average analyst price target ($11.57) is 45.17% above its current price ($7.97).

For the latest price and information on BlackBerry Limited, please visit Finstead and search for "BB price" or "BB news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Blackberry Ltd (BB) stock price: here is the outlook

Carla Olson | 9:47 am ET, 26 Sep 2018

BlackBerry Limited (BB) shares are trading at $10.30.  The company is expected to publish its Q2 fiscal 2019 results on Friday, September 28. What's driving BB stock price? What's BB stock price forecast?

Blackberry stock produced a return of over 60% in 2017, but it did not keep up with investors' aspirations this year. The company has changed its business model and now reports in three segments: enterprise software and services, technology solutions, and licensing (a.k.a., the IP segment).

Some investors are bullish about the stock as they expect strong future growth in the software and services segment. On the other hand,  many other investors are losing patience with the company because of the inefficient use of cash, and believe that management needs to clearly outline how it plans to use cash in the next earnings call.  Revenue fell 11% to $217 million in the last quarter and earnings per share came at $0.03.

The company is scheduled to release the second-quarter fiscal year 2019 results before market open on September 28, 2018. For the upcoming report, analysts expect the company to earn $0.01 per share on revenue of $209.38 million. The company beat analyst estimates in the previous four quarters.

What is the sentiment towards the BB stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, BlackBerry Limited (BB) returned +0.4%.

BlackBerry Limited (BB) forward P/E ratio is 68.67, and it's high compared to its industry peers' P/E ratios.

BlackBerry Limited (BB) average analyst price target ($11.99) is 18.6% above its current price ($10.11).

For the latest price and information on BlackBerry Limited, please visit Finstead and search for "BB price" or "BB news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


BlackBerry Limited (BB) Buy or Sell Stock Guide

7:41 am ET, 25 Jun 2018

The analysis below may be helpful to you if you have any of the following questions about BB stock:

  • Is BB a buy or a sell?
  • Should I sell or hold BB stock today?
  • Is BB a good buy / a good investment?
  • What are BB analyst opinions, recommendations, ratings?

Here are BB stock buy reasons/signals:

1. Operating as a leading player in the enterprise mobility management, BlackBerry is widely recognized for productivity and security innovations. The company delivers one of the most secure end-to-end mobile enterprise solutions in the market through a broad portfolio of products and services. It offers an end-to-end software and services platform for the Enterprise of Things, which includes computers, vehicles, sensors, equipment and other connected endpoints within the enterprise that communicate with each other to enable smart business processes.

2. With the continued the digital transformation of enterprises, the number and scope of connected devices has also expanded manifold to include other endpoints such as vehicles. With the rapid growth of this network of connected endpoints, often referred to as the IoT (Internet of Things), security has become increasingly important to thwart data theft. This landscape has created opportunities for secure management solutions, embedded systems, communications platforms, enterprise applications, networks and analytic tools, as well as for related services that help enterprises to enhance data security and user privacy.

3. BlackBerry has inked a strategic partnership with Baidu in January 2018 on a self-driving car project. The deal allows Baidu to use its QNX Hypervisor 2.0 software, which is designed for complex in-vehicle computer systems in its open-source self-driving platform, Apollo. BlackBerry has also entered into a multi-year agreement with Jaguar Land Rover to collaborate and develop technology for the latter’s next-generation vehicles.

4. BB stock price ($10.68) is close to the 52-week low ($10.18). Perhaps now is a good time to buy?

Here are BB stock sell reasons/signals:

1. With increasing global exposure, BlackBerry does face the risk of adverse foreign exchange fluctuations. Apart from adverse foreign currency related movements, high debt levels are also concerning. The company exited fiscal 2018 with long-term debt of $782 million, much higher than the $591 million at the end of fiscal 2017.

2. On a P/E (TTM) basis, shares of BlackBerry appears to be highly overvalued. The stock is currently trading at $154.9 compared with the tally of $22.4 for the industry. The stock is trading near the lower range.

3. BB quarterly revenue growth was -18.50%, lower than the industry and sector average revenue growth (1.56% and 1.56%, respectively).

4. BB profitability is declining. The YoY profit margin change was -82.50pp.

5. BB forward P/E ratio is 81.47, and it’s high compared to its industry peers’ P/E ratios.

6. BB Price/Sales ratio is 7.07, and it’s high compared to its industry peers’ P/S ratios.

7. BB short interest (days to cover the shorts) ratio is 14.47. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on BB?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


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