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blackberry

BlackBerry Stocks Decline as 3Q Sales Skid from Year Ago

Shares of BlackBerry limited fell on Tuesday’s post-trading market after its third-quarter fiscal 2022 sales dropped from last year’s report. 

The cybersecurity company, formerly known as a smartphone maker, slashed 1.73% or 0.16 points to $9.09 per share.

In the regular trading session, it posted an inverse move from its gain of 4.17% or 0.37 points to $9.25 per share. 

Still, its share price is 40.58% or 2.67 points year-to-date higher to $9.25. It also stands with a market capitalization of $5.27 billion. 

In the latest earnings press release, BlackBerry’s net profit dropped to $74.00 million from the $130.00 million in the same period last year. 

Consequently, it reported break-even earnings per diluted share with a net loss of $0.05, surpassing the market average estimate of $0.07.

Then, its revenue weakened to $184.00 million from last year’s $218.00 million.

Correspondingly, the prior figure received a boost from the surging demand of its software services due to the work from home trends. 

Nevertheless, the firm outpaced analysts’ expectations of $177.25 million, supported by the sustained demand for its cybersecurity and Internet of Things products.

BlackBerry Posts Strong IoT Revenue

Accordingly, the Blackberry IoT segment significantly edged up to $43.00 million from the $22.00 million in 2020.

Meanwhile, its Cybersecurity business generated $128.00 million, slightly lower than the $130.00 in the previous year. 

The demand for its security software remained strong as institutions shifted to cloud-based solutions, supporting remote work amid the pandemic.

Moreover, its income on licensing and other products weakened to $13.00 million from $56.00 million.   

Consequently, BlackBerry CEO John Chen noted that they anticipates that automotive supply chain constraints will ease in the fourth quarter.

In line with this, the firm forecasted a boost in demand for its QNX car software. The said product is mainly utilized by vehicle manufacturers like Volkswagen, BMW, and Ford Motor.

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