BlackBerry $BB Stock Beats, But Falls In After-hours On Forecast

  • Post category:Technology
  • Reading time:10 mins read
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Traders couldn’t make up their minds about BB stock in after-hours trading on December 21, 2021. BB stock was up after the company reported beats but then fell on a disappointing forecast.

BlackBerry Reports Third Quarter Fiscal Year 2022 Results

On December 21, 2021, BlackBerry Limited (NYSE: BB; TSX: BB) reported financial results for the three months that ended November 30, 2021. BlackBerry reported Q3 adjusted EPS of zero versus the consensus (7c). The company reported Q3 revenue of $184M versus the consensus estimate of $177.25M.

“This quarter BlackBerry delivered solid sequential billings and revenue growth for both the IoT and Cybersecurity businesses, beating expectations for the second consecutive quarter. We also beat expectations on earnings, despite the ongoing investment to drive future top-line growth,” said John Chen, Executive Chairman & CEO, BlackBerry. “In IoT our QNX business achieved a quarterly record for design-related revenues, performing stronger than expected despite ongoing industry supply chain headwinds. On the Cybersecurity front, we saw further traction for our recent unified endpoint security product launches with additional head-to-head wins against other next-gen players. I am excited about how the current organization is executing to take advantage of the market opportunities.”

BlackBerry forecasts Q4 revenue $175M-$190M versus consensus of $208M

CEO John Chan said in the Q3 earnings conference call that he expects continued sequential growth in and for Q4 cybersecurity revenue to be in the range of $125M to $135M. Chan said that in the Internet of Things business, “strength we have seen in design activities is expected to continue into Q4, and we anticipate a slight easing in supply chain headwinds. As a result, our outlook is for further sequential revenue growth and for Q4 revenue to be in the range of $50M to $55M, returning to the pre-pandemic run rate”.

BlackBerry Launches New Managed Extended Detection and Response (XDR) Service

On December 20, 2021, BlackBerry Limited (NYSE: BB; TSX: BB) announced a major update to its BlackBerry® Guard managed detection and response (MDR) service to now deliver a managed extended detection and response (XDR) service. This new functionality is achieved through a partnership with Exabeam. The BlackBerry Guard managed XDR solution provides coverage beyond endpoints by seamlessly integrating Cylance® AI-powered BlackBerry® Optics, BlackBerry® Persona, BlackBerry® Gateway, and BlackBerry® Protect solutions with Exabeam Fusion SIEM and XDR solutions. BlackBerry customers will benefit from BlackBerry solutions and the Exabeam security analytics and automation platform for high-fidelity alerts and cross-tool threat hunting services that automatically correlate data from mobile devices, servers, users, and networks to quickly detect potential threats in real-time, visible from a single console.

“With cybercrime drastically increasing due to the pandemic, cybercriminals are targeting people — not just the systems in place. Legacy mitigation tools designed to safeguard organizations’ systems and infrastructure only are now inadequate to stop expanding attack avenues,” said Billy Ho, Executive Vice President of Product Engineering, BlackBerry. “Organizations operating in hybrid workplace environments need human threat experts to manage cybersecurity incident alerts, deal with and prevent attacks, and fill in the resource and skills gap. The integrated BlackBerry Guard solution provides customers with an innovative and industry-leading managed XDR service, keeping employees secure 24×7.”

Exabeam is the leader in next-generation SIEM that powers security teams with analytics-driven insights to uncover, investigate, and resolve threats.

“We’re excited that after extensive due diligence, BlackBerry selected Exabeam to enable the BlackBerry Guard managed XDR solution to help end clients more easily achieve holistic XDR coverage with a simplified experience,” said Gorka Sadowski, Chief Strategy Officer, Exabeam. “Exabeam Fusion SIEM and Exabeam Fusion XDR combined with the BlackBerry AI-powered solutions will offer thousands of BlackBerry customers a powerful and prescriptive solution to solve their most pressing threat, detection, investigation, and response needs.”

With Guard 2.0, BlackBerry’s managed XDR analysts and threat prevention experts work as an extension of customers’ security and IT teams, providing around-the-clock multi-regional support, compliance and monitoring and responding to threats directly when necessary. This integration introduces telemetry to the BlackBerry analyst portal so that customers can defend against the evolving threat landscape. With Guard 2.0, customers can choose a single service offering that combines Guard’s managed XDR services on top of the BlackBerry Cyber Suite products and Exabeam solutions — all in one package.

BlackBerry QNX to be used for future BMW Group driver assistance systems

On December 15, 2021, BlackBerry Limited (NYSE: BB; TSX: BB) announced it has entered into a multi-year agreement with BMW Group to collaborate and develop technology for the automotive manufacturer’s next-generation vehicles.

As part of the agreement, BlackBerry will license its QNX® technology to BMW Group, as well as assign a team of engineers to support the development of new SAE Level 2/2+ driving automation functions to be deployed across multiple makes and models.

BMW chose BlackBerry because of the company’s deep expertise and strong track record of providing leading edge embedded software solutions that deliver safety, reliability and security. The news follows recently announced BlackBerry QNX design wins with other industry leaders including Visteon, Nobo, WM Motor, Desay SV, Scania and Volvo Group.

The deployment is another significant automotive milestone for the company, whose BlackBerry QNX technology is in production programs with 45 different OEMs, 7/7 of the top Tier 1s and over 195 million vehicles worldwide. With the BlackBerry QNX technology platform acting as a trusted foundation, BMW Group will be empowered to deliver a unique driving experience for customers with the highest level of system safety and reliability.

BlackBerry QNX is the market leader for safety-certified embedded software in automotive. Automakers and Tier 1s, including BMW, Aptiv, Bosch, Ford, GM, Honda, Mercedes-Benz, Toyota, and Volkswagen, trust BlackBerry QNX software for a broad range of safety-related systems. These include Advanced Driver Assistance Systems (ADAS), Digital Cockpits and Secure Data Gateways, all of which are becoming increasingly prevalent in vehicles. Furthermore, BlackBerry QNX is key to the future of the automotive industry, with design wins with 24 of the top 25 electric vehicle automakers, and providing a safe, reliable, and secure software foundation for autonomous drive vehicle systems.

BlackBerry achieves carbon neutrality

On December 14, 2021, BlackBerry announced it has achieved carbon neutrality across Scope 1, Scope 2 and material Scope 3 emissions, the three groups that categorize the emissions a company creates, as classified under the Greenhouse Gas Protocol Corporate Standard. Additionally, BlackBerry has invested in carbon removal, for a net effect of the company removing carbon from the atmosphere.

“Businesses are key to building a more sustainable and equitable today and tomorrow,” said Neelam Sandhu, SVP & Chief Elite Customer Success Officer, BlackBerry. “BlackBerry is proud to have achieved carbon neutrality, invest in carbon removal, and partner with customers to reduce their carbon footprints through our cloud-based solutions.”

“It has been a pleasure to partner with BlackBerry on their achievement of carbon neutrality,” said Dan Fraleigh, CEO, Carbonzero, a leader in corporate carbon management strategies and solutions. “We applaud their approach to significantly reducing direct and indirect emissions, and offsetting the remainder through investments in Canadian, United States, and international projects.”

“We are delighted to partner with BlackBerry to help them accomplish their environmental sustainability goals,” said PJ Marshall, Executive Director of Restore the Earth Foundation. “Their proactive approach to carbon emission reductions is commendable, and their partnership with Restore the Earth and ClimeCo will also have meaningful impacts to the ecological landscape where the restoration is taking place. The reforestation that will occur as a result of this partnership will ensure that biodiversity, critical habitats, and communities are enhanced and supported in self-sustaining systems.”

The technology sector has a central role to play in responding to the climate crisis, as digital transformation has the potential to decouple economic growth from carbon emissions growth.

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📉 BB Stock Technical Analysis

Bb Stock

Both the long and short-term trends are negative. It is better to avoid buying stocks with negative trends. BB is part of the Software industry. There are 342 other stocks in this industry. BB outperforms 77% of them. BB is currently trading in the lower part of its 52-week range. The S&P500 Index however is trading in the upper part of its 52-week range, so BB is lagging the market. There is support at 8.78 from a horizontal line in the weekly time frame. There is a resistance zone ranging from 10.01 to 10.17. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. Although the technical rating is bad, BB does present a nice setup opportunity. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 9.26. Right above this resistance zone may be a good entry point. We notice that large players showed an interest for BB in the last couple of days, which is a good sign. Click here to sign up for email alerts on when BB stock is a good buy.

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