On Wednesday, BlackBerry reported a surprise fourth-quarter profit surge fueled by higher cybersecurity services, growing online crimes, and high-profile hacks.
The Canada-based company’s stock closed trading at $2.81, increasing 0.18% apiece. Moreover, it rose significantly by 6.05% to $2.98 per stock in the after-hours session.
The firm’s earnings per share (EPS) have increased to $0.03, higher than analysts’ -$0.04 anticipations. The data also surpassed the previous quarter’s $0.01 reading.
Furthermore, BlackBerry’s quarterly revenue dipped to $173.00 million but is still over the experts’ estimate of $150.47 million. The latest figures are lower than the $175 million from Q3.
Additionally, the company’s cybersecurity unit revenue climbed by 5.00% year-on-year to $92 million, while earnings from its Internet of Things (IoT) businesses bolstered by 25.00% to $66.00 million.
Meanwhile, the Waterloo-based firm CEO, John Giamatteo, stated that they are making solid improvements with efforts to split the divisions and steer toward profitability and utilizing cash usage about halved sequentially this quarter.
Reports show that the firm had reduced 200 jobs and departed some offices in February and was aiming for a $100.00 million uptick in annual profit.
In December, BlackBerry tossed out its initial public offering (IPO) targets for its IoT business but still anticipates separating the IoT and cybersecurity businesses into standalone sectors.
Cybersecurity, IoT to Boost BlackBerry to Recover Losses
According to reports, BlackBerry’s latest earnings report could signal recovery as it persists to make progress and maximize gains with its IoT and cybersecurity divisions.
Meanwhile, data shows that the company’s shares have battered in the past year by declining about 38.00%. However, this performance is separate from the S&P 500’s boost of over 26.00% around the same period.
Concurrently, the company forecasts first-quarter revenue to range from $130.00 million to $138.00 million, below analysts’ calculations of $151.12 million.
Furthermore, BlackBerry foresees next year’s profit in the range of $586.00 million to $616.00 million and an adjusted loss per share of $0.03 to $0.07.
