Why BlackBerry Shares Are Rising Premarket Thursday
Portfolio Pulse from Lekha Gupta
BlackBerry Limited (NYSE:BB) shares rose in premarket trading after reporting better-than-expected fourth-quarter FY24 results. Revenue increased to $173 million, surpassing the consensus of $154.8 million, with IoT revenue hitting a record $66 million and Cybersecurity revenue growing to $92 million. Adjusted gross margin improved to 75%, and adjusted EBITDA turned positive at $21 million. Adjusted EPS was $0.03, beating the expected loss of $(0.03). However, the company's FY25 revenue and EPS outlook fell short of expectations, projecting lower than estimated figures.
April 04, 2024 | 10:18 am
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BlackBerry Limited reported strong Q4 FY24 results with record IoT revenue and improved margins, but provided a weaker FY25 outlook.
The positive Q4 FY24 earnings report, highlighted by record IoT revenue and improved margins, is likely to generate short-term investor optimism, driving the stock price up. However, the weaker-than-expected FY25 revenue and EPS outlook could temper this optimism, creating uncertainty about the company's future performance. This mixed news makes the short-term impact on the stock price neutral, as initial gains from the earnings beat may be offset by concerns over the future outlook.
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