The initial 4% share price spike quickly ceased to fall and turn into an injunction on Wednesday.
Figure 1: BlackBerry is a service in Waterloo, Canada.
We discussed the most recent news of BlackBerrys earnings how good was it, and what else did investors expect from CEO John Chen & Co.
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BlackBerry Q3: all-around beat me.
Wall Street predicted that BlackBerry would be able to attract revenues of just 1% in the fourth quarter of the quarter, but the company instead delivered 4 percent ($184 million). In fact, analysts predicted a 7 cent loss, but BlackBerry surprised by a slight break of evens.
Figure 2: BlackBerry stock surprise and estimate by quarter.
We want to get Alpha on the market.
In a previous article, we were able to get some answers after the report hit the wires and found the answer was a good one: 'When we heard the story, we asked for it's answer'.
For this matter, beauty is in the eye of the beholder. In the Cybersecurity unit, BlackBerry posted a total of $128 million in revenue a decent 7% increase from fiscal Q2, but a 1.5% decrease YOY in the head-to-head win against other next-gen players and product launches helped propel segment revenues.
As of this quarter, the company expects that Cybersecurity keeps the growth rate unchanged around the low-to-low-single digit percentage points. Unlike many small companies, the revenues will be able to grow approximately $125 million to $135 million, depending on certain big government deals.
In addition, the company announced a 43% increase in IoT revenue, resulting in a sequential increase of 7.5% from FY2 to $34.
In the Q4 fiscal outlook, BlackBerry seemed optimistic as a supply chain improvement would boost revenue and the pre-pandemic run rate. The guidance range was $50 to $55 million in sales, pointing to 16 % to 27 % growth.
According to the CEO John Chen, BlackBerry made a significant progress in the IVY platform in fiscal Q3, including an early access version of the product, and announced his new software integration with the platform.
When asked about specific data points on IVY, the CEO said that partner feedback was positive. More information should be provided at the CES (formerly Consumer Electronics Show) on January 5.
Not yet and maybe that was one of the main reasons for the stock losing after earnings. At least among the retail investors on the discussion board, there was a large amount of anticipation and speculation regarding the price of the patent sale.
The discussions about the non-core portion of the portfolio patent have been taking longer than predicted, according to the CEO John Chen. Having mentioned that a definitive agreement is planned soon and the shareholders should update the progress in January.
The licensing business sold $35,000 and five4% of revenues in the fiscal Q3.
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What should I expect next?
At first glance, BlackBerrys fiscal Q3 performance was decent. The problem for the stock is that some short-term catalysts that could have sent the share price higher haven't finally arrived, possibly allowing the more risk-reliable investor to throw in the towel early.
One of the most critical is the sale of the non-core portion of the patent portfolio. We see the best chance of disappointment in the timing and price negotiation, and the possibility of a good deal being inked and causing a jolt of bullishness.
Next, the consumer technology association's annual CES conference has focused on the news from BlackBerry, but the rumor is that it may be known to be a bit of a threat from a nigel tyre or even the looming patent agreement.
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