© Reuters. BlackBerry (BB) Delivers Earnings Beat, RBC Remains Cautious Amid Low Growth Visibility
By Senad Karaahmetovic
Shares of BlackBerry (NYSE:) are down about 2% in premarket Wednesday after the company delivered Q2 results.
BlackBerry a loss per share of $0.05, which was better than the expected loss per share of $0.07. Revenue came in at $168 million to top the analyst consensus of $161.45 million.
“We’re executing on our plan and we’re seeing the decisions made in recent quarters starting to pay off, with Cybersecurity ARR expected to resume growth early next fiscal year,” CEO John Chen said.
The adjusted gross margin came in at 63.7%, again better than the consensus of 62.4%. However, shares were negatively impacted by slightly lower software revenue, according to an RBC analyst.
The analyst cut the price target to $6 from $6.5 per share while remaining Sector Perform-rated on BlackBerry stock.
“While management reiterated its full year outlook, better visibility to growth is needed to improve sentiment. Maintain Sector Perform, as we believe BlackBerry’s valuation fairly reflects potential opportunities and risks,” the analyst wrote in a note.
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