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Takeaways
- BlackBerry stock swooned Wednesday after the company issued revenue forecasts well below analysts' expectations.
- The company’s Secure Communications division is expected to experience a decline in revenue.
- BlackBerry has delivered revenue and adjusted profit that was higher than expected in its fiscal fourth-quarter.
BlackBerry (BB), a company that makes smartphones, announced revenue forecasts on Wednesday that fell short.
Visible Alpha, a Canadian technology company, projected revenue for fiscal 2026 of between $504 and $534 million dollars, which is below the Visible Alpha consensus estimate of $567.3 millions dollars. Its current-quarter revenue estimate of $107 million to $115 million also fell short of analysts' projections.
BlackBerry’s Secure Communications Unit revenue is expected to drop to between $230 and $240 millions in fiscal 2026. This compares to $272.6million the year before. Analysts had predicted $277 million.
Q4 Results Top Estimates
BlackBerry reported a fourth-quarter adjusted earnings per share of 3 cents, on revenue that was down 7% from the previous year at $141.7 million. Both figures were better than analysts’ predictions.
BlackBerry shares dropped by almost 11% within an hour of the opening bell. Still, they have risen by about 19% in the past year.
