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BlackBerry (BB) to Report Q3 Earnings: What's in Store?

BlackBerry Limited BB is scheduled to report third-quarter fiscal 2021 results (ended Nov 30, 2020) on Dec 17, after the closing bell. In the last reported quarter, the company delivered a positive earnings surprise of 1,000%. The bottom line beat the Zacks Consensus Estimate by 10 cents.

The Waterloo, Canada-based cybersecurity software and services company continues to invest in product development and go-to-market strategy to drive long-term sustainable growth. BlackBerry’s exceptional security capabilities and leadership in secure connectivity technologies are major growth drivers.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly announcement.

Factors at Play

Despite challenges related to COVID-19, BlackBerry is expected to have benefited from QNX design wins and significant cybersecurity partnerships. Also, the company continues to have the trust of governments around the world. During the quarter under review, BlackBerry’s Unified Endpoint Manager software achieved the Department of Defense Information Network approval as a Mobile Device Management solution.

StradVision, a leader in AI-based camera perception technology, chose the QNX Software Development Platform within some next-generation Advanced Driver Assistance Systems and Autonomous Vehicles from South Korean automakers. BlackBerry announced a new partnership with Sliced Tech to host its secure communications portfolio, SecuSUITE for Government, for Australian government and enterprise customers. Sliced Tech is an Australian managed services provider that delivers the highest level of security and assurance in its certified gateway and cloud services.

Saudi Financial Lease Contract Registry Company (known by the brand name SIJIL) selected BlackBerry’s Unified Endpoint Manager and Workspaces for its secure communications needs. BlackBerry’s Unified Endpoint Manager achieved certification from the National Information Assurance Partnership, a U.S. government initiative that oversees the evaluation of commercial cybersecurity products for use in U.S. national security systems.

BlackBerry and TELUS announced a new partnership to provide secure emergency management and crisis communications to organizations in Canada. The United States Air Force selected BlackBerry Spark for their secure productivity needs. BlackBerry Spark allows governments and enterprises to modernize their digital infrastructure, for high-performance ‘work from anywhere’, without any compromise on security.

BlackBerry launched a new global partner program, the BlackBerry Partner Program. It combines the Enterprise Partner Program and Cylance Partner Programs into one comprehensive structure. BlackBerry announced Cyber Suite, the industry’s first, comprehensive, AI-powered unified endpoint security solution that aids its leadership in AI. It unveiled Protect Mobile, a new mobile threat defense solution that extends AI-based security in BlackBerry Protect to mobile devices.

The company integrated its critical event management platform, BlackBerry AtHoc, with the real-time collaboration platform, Microsoft Teams. BlackBerry partnered with ServiceNow to integrate the BlackBerry AtHoc service within the Now platform for rapid crisis communications and IT service management.

Plus, a leading provider of self-driving truck technology, selected BlackBerry’s QNX technology for the global commercial deployment of its automated driving system for Class 8 trucks. BlackBerry’s Unified Endpoint Manager software achieved National Security Agency Commercial Solutions for Classified Program approval.

These developments are likely to have had a positive impact on BlackBerry’s top line in the fiscal third quarter. The Zacks Consensus Estimate for adjusted loss per share is pegged at 1 cent, which suggests a decline of 133.3% from the prior-year quarter’s reported figure.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for BlackBerry this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: BlackBerry’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both are pegged at a loss of 1 cent. 

BlackBerry Limited Price and EPS Surprise

BlackBerry Limited price-eps-surprise | BlackBerry Limited Quote

Zacks Rank: BlackBerry currently carries a Zacks Rank #3.

Stocks to Consider

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter.

General Mills, Inc. GIS is slated to release second-quarter fiscal 2021 results on Dec 17. It has an Earnings ESP of +1.34% and a Zacks Rank #3.

Winnebago Industries, Inc. WGO is scheduled to release first-quarter fiscal 2021 results on Dec 18. The company has an Earnings ESP of +14.89% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

FactSet Research Systems Inc. FDS has an Earnings ESP of +1.58% and a Zacks Rank of 3. The company is set to report first-quarter fiscal 2021 results on Dec 21.

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