BRP will generate free cash flow exceeding $1 billion in 2023. (Photo: 123RF)
What to do with BlackBerry, BRP and TC Transcontinental titles? Here are some analyst recommendations likely to move prices soon. Note: the author may have a completely different opinion than that expressed by the analysts.
BlackBerry (BB, $6.25; $4.58 US): the stock takes off on the stock market
Although its results for the second quarter of 2024 will not be presented until September 28, the preliminary figures announced by BlackBerry this week largely displeased analysts who follow its activities.
Result: the value of its share lost 15.52% on Thursday on the New York Stock Exchange.
BlackBerry expects revenues of 132 million US dollars (US$M), while analysts’ consensus was more for US$157M. Analyst Paul Treiber of RBC Capital Markets, for his part, predicted a figure of US$161 million.
These US$132 million therefore represent a decrease of 22% compared to those of US$168 million revealed for the corresponding period a year ago.
BlackBerry’s cybersecurity activities generated revenues of US$80M, US$20M less than analysts’ expectations, and US$31M less than the same quarter in 2023. This is a drop of 28%.
“Cybersecurity revenue is now at its lowest level since the company began segmenting its results seven years ago. While cybersecurity revenues are below expectations, they reflect delays in concluding several government contracts, highlighting the challenges BlackBerry faces in turning around its other cybersecurity businesses,” said Paul Treiber.
It’s not just the cybersecurity sector that’s keeping analysts cool. That of the Internet of Things too. BlackBerry expects revenues of US$49 million, three less than RBC and consensus forecasts.
“The Internet of Things misses the analyst consensus target for the third quarter in a row,” says Paul Treiber, “as automakers postpone the development of new software programs.”
Pending results at the end of September, RBC is already lowering its expectations for BlackBerry’s overall revenues for the entire 2024 financial year. It now forecasts US$901M in total revenues, compared to US$913M in its previous estimate . For the 2025 financial year, its forecast is US$738 million.