BlackBerry exceeds Q2 forecasts, offers rosy annual guidance

Investing.com -- BlackBerry posted second-quarter results that beat analyst expectations and issued rosy guidance for the full year.

The company reported second-quarter earnings per share (EPS) of $0.04, surpassing analyst expectations of $0.01. Revenue for the period rose 3% year-over-year to $129.6 million, ahead of the $120.06 million consensus.

BlackBerry’s QNX business generated $63.1 million in sales, a 15% increase from a year earlier, while Secure Communications revenue declined 10% to $59.9 million.

Secure Communications annual recurring revenue (ARR) rose both year over year and sequentially to $213 million.

"BlackBerry delivered year-over-year revenue growth and expanded gross margins while reducing operating expenses. This combination ensured strong profitability in the second quarter, beating expectations and achieving a second consecutive quarter of GAAP profitability," said John J. Giamatteo, CEO of BlackBerry.

"Our QNX division recorded a "rule of 40" quarter and progress across all our key growth initiatives. Our Secure Communications division exceeded expectations at both the top and bottom line, and delivered improvements in its key metrics."

Adjusted EBITDA came in at $25.9 million, equal to 20% of revenue, surpassing guidance provided earlier.

For the third quarter, BlackBerry forecast EPS of $0.02 to $0.04, in line with the $0.03 consensus at the midpoint, and projected revenue of $132 million to $140 million, versus analyst expectations of $138.04 million.

Looking further ahead, the company sees fiscal 2026 EPS of $0.11 to $0.15, above the $0.09 consensus, and revenue between $519 million and $541 million, compared with the $519.7 million anticipated by analysts.

Related articles

BlackBerry exceeds Q2 forecasts, offers rosy annual guidance

5 High-Yield Dividend Stocks for Reliable Income Amid September Volatility

EUR/USD Could Rebound as Bond-Driven US Dollar Strength Looks Overdone

View Comments