BlackBerry Stock Slips Ahead Of Q3 Results, Analysts Worried About Slow Growth: Retail Remains Loyal

Waterloo, Ontario-based Blackberry Limited ($BB) is scheduled to report its fiscal year 2025 third-quarter results after the market closes on Thursday. The quarterly report comes amid the company making strides with its new-found focus on enterprise cybersecurity. 

Blackberry, the OG smartphone maker that lost its leadership position amid a lack of innovation and competitive pressure from bigger players, is expected to report a loss of $0.01 per share on revenue of $144.84 million, according to Stocktwits data. 

The company’s guidance issued in late September calls for bottom-line result in the range of a loss of $0.01 to a profit of $0.01 and revenue of $146 million to $154 million. 

It expects cybersecurity revenue of $86 million to $90 million, Internet of Things (IoT) revenue of $56 million to $60 million and licensing & other revenue of about $4 million.

On Tuesday, TheFly reported that RBC Capital Markets analysts raised the price target for BlackBerry stock from $3 to $3.25 and maintained a ‘Sector Perform’ rating. The firm sees the sale of Cylance at a higher-than-expected takeout price as removing a major overhang on BlackBerry’s stock price.

Last week, BlackBerry said it is divesting Cylance, a provider of endpoint security assets to companies, to Arctic Wolf for $160 million, subject to some adjustments, and about 55 million Arctic Wolf stock.

RBC, however, expressed concerns about the slow growth of the Secure Communications business and the soft auto market that is denting the IoT segment. 

TD Securities, which upped the price target from $2.75 to $3.25, citing the Cylance deal, highlighted automotive headwinds and a lack of near-term events to catalyze value expansion.

BlackBerry’s full-year guidance currently stands at a loss of $0.02 to $0.05 and revenue of $591 million to $616 million. 

BB sentiment and message volume December 19, 2024, as of 10:40 am ET | Source: Stocktwits

On Stocktwits, retail sentiment toward BlackBerry remained ‘bullish’ (63/100), with the imminent earnings release sparking retail chatter. Message volume stayed at ‘high’ levels.

The once high-profile stock is now counted among the meme group and is a clear retail favorite.

A Stocktwits platform user predicted strong gains between the next year and 2030. Another set their sight on a post-earnings rally that could take the stock to $5.

Another retailer hoped for a stock buyback program from the company.

At last check, BlackBerry stock was down 0.66% at $2.99. The stock has fallen about 15% this year, comparing unfavorably to the Nasdaq Composite’s 30% gain. 

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