Blackberry Ltd Down 1.96% To $4.99 After Earnings Beat

BlackBerry Ltd (BB) beat out earnings estimates for Q2 2023 this afternoon.

Wall Street earnings per share (EPS) projections for Blackberry Ltd were at a loss of $0.07 per share. The company beat those estimates with an EPS loss of $0.05 per share. The loss of $0.05 per share (which represents a -29% EPS surprise) led to the company's profits rising 17% compared to last year when the firm reported an EPS loss of $0.06 per share. The increase in Blackberry Ltd's annual growth rate represents how the business is performing well amid recent economic conditions.

Consensus estimates for Blackberry Ltd revenue averaged out to $177.3 million, with the business missing on those expectations with reported second-quarter revenue of $168 million. The $9.3 million (5%) negative revenue surprise led to negative 4% growth year-over-year as the firm reported revenue of $175 million in its year-ago quarter. The higher earnings growth compared to revenue points to Blackberry Ltd improving its profit margin.

The stock is down 1.96% to $4.99 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

The average recommendation from Wall Street analysts was a Sell which may get revised based on this new data.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

Blackberry Ltd has performed a little above average during the past few months. Before the report, Blackberry Ltd received a Long-Term Technical Rank by InvestorsObserver of 73, putting it in the top half of stocks. The firm set a 52-week low on May 12, 2022 at $4.7 and set a 52-week high on November 3, 2021 at $12.39.

BlackBerry, once known for being the world's largest smartphone manufacturer, is now exclusively a software provider with a stated goal of end-to-end secure communication for enterprises. The firm provides endpoint management and protection to enterprises, specializing in regulated industries like government, as well as embedded software to the automotive, medical, and industrial markets.