BlackBerry shares fall 8% as cybersecurity outlook remains weak

BlackBerry (NYSE:BB) shares dropped by almost 8% Wednesday in the wake of the cybersecurity software company warning that larger economic issues are likely to impact its business in 2023.

Late Tuesday, BlackBerry (BB) reported a fiscal third-quarter loss of 5 cents a share, excluding one-time items, on revenue of $169M, which topped analysts' estimates for a loss of 7 cents a share, on $166.8M in revenue. During the same period a year ago, BlackBerry (BB) broke even on a per-share basis, on revenue of $184M.

The company said that its sales cycles are taking longer to complete as customers deal with economic uncertainty and postpone or stretch out their order timelines. As such, BlackBerry (BB) estimates that revenue growth from its cybersecurity business would be flat in the first half of 2023 before gaining momentum in the second part of the year.

BlackBerry (BB), which made its name with its one-time ubiquitous mobile phones, has shifted toward software platforms for cybersecurity and automobiles.

Wall Street analysts currently have a consensus sell rating on BlackBerry's (BB) stock, while Seeking Alpha authors give the shares a rating on hold. Seeking Alpha's Quant System, which historically outperforms the stock market, also gives BlackBerry (BB) stock a hold rating.

Comments are closed.