BlackBerry Stock Rises As Earnings Meet Expectations As Security Revenue Disclosed

BlackBerry earnings for the May quarter fell from a year earlier but met expectations as revenue edged by Wall Street targets. BlackBerry stock rose on the news as it broke out computer security software revenue for the first time.

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Canada-based BlackBerry (BB) reported a 5-cent loss on an adjusted basis for the quarter ending May 31. Revenue fell 16% to $174 million, including $107 million in cybersecurity sales and $43 million in “Internet of Things” sales, the company said. IoT revenue includes automotive software.

Analysts expected BlackBerry to report a 5-cent per-share loss on revenue of $171.3 million. In the year-earlier quarter, Blackberry stock earned 2 cents per share on revenue of $206 million.

BlackBerry stock rose 1.4% to 12.86 in extended trading on the stock market today. In Thursday’s regular session, shares fell 3.5%.

Blackberry Stock: Intellectual Property Sale Expected

Analysts expected lower intellectual property licensing revenue to impact the BlackBerry earnings report. The company is in talks to sell its intellectual property portfolio. BlackBerry garners about 30% of revenue from intellectual property fees.

Blackberry stock has gained some 92% in 2021, though shares retreated heading into the fiscal first-quarter earnings report. Investors using social media have driven BB stock and other so-called meme stocks higher, including AMC Entertainment (AMC), GameStop (GME) and Clover Health (CLOV).

Here’s an in-depth look at BB stock, using IBD technical and fundamental analysis.

A one-time leading maker of mobile devices, BlackBerry was a driving force in pagers and cellphones. But its hardware business collapsed in 2008 amid competition from Apple (AAPL) iPhones and Android devices.

BlackBerry pivoted to mobile security software under Chief Executive John Chen. Also, BlackBerry has been a provider of software in the automotive market for entertainment and mapping programs.

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns for companies like BlackBerry stock is one key to the investment guidelines.

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