Blackberry (BB, $9.32) Q4 revenue misses expectations, amid patent negotiations
BlackBerry Limited posted fourth quarter revenue that fell short of analysts’ expectations. This could in part be due to licensing revenue challenges amid negotiations to sell patents that bring in licensing revenue.
The company’s adjusted earnings for the quarter came in at 3 cents a share, on non-GAAP revenue of $215 million. In the same period a year ago, the company reported earnings of 9 cents a share on sales of $291 million. Analysts on average expected adjusted earnings of 3 cents a share on sales of $245 million.
BlackBerry is attempting to sell some patents to an unnamed buyer. “We entered into an exclusive negotiation with a North American party for the sale of a portion of the company’s portfolio, primarily related to mobile-devices messaging and wireless networking,” Chief Executive John Chen said in a conference call Tuesday. He added that BlackBerry “limited these licensing activities in the quarter due to the negotiations and because of accounting rules.”
Chen indicated that predicting 2021 results was made difficult by the patent negotiations. He said that if a sale does not happen, BlackBerry would project $100 million in annual licensing revenue. For its core software and services business, Chen expected annual sales of $675 million to $715 million.
BB's RSI Indicator recovers from overbought zone
The 10-day RSI Indicator for BB moved out of overbought territory on May 23, 2023. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 30 instances where the indicator moved out of the overbought zone. In of the 30 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 57 cases where BB's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BB declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
BB broke above its upper Bollinger Band on May 05, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 03, 2023. You may want to consider a long position or call options on BB as a result. In of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for BB just turned positive on May 05, 2023. Looking at past instances where BB's MACD turned positive, the stock continued to rise in of 39 cases over the following month. The odds of a continued upward trend are .
BB moved above its 50-day moving average on May 02, 2023 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BB advanced for three days, in of 264 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. BB’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.525) is normal, around the industry mean (31.361). P/E Ratio (344.828) is within average values for comparable stocks, (167.934). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (4.080). Dividend Yield (0.000) settles around the average of (0.033) among similar stocks. P/S Ratio (5.051) is also within normal values, averaging (70.597).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BB’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.
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