The tech company's fiscal first-quarter losses fell in line with analysts' expectatons
BlackBerry Ltd (NYSE:BB) stepped into the earnings confessional last night, reporting first-quarter losses of 5 cents per share, which fell in line with analysts' estimates, alongside better-than-expected revenue of $168 million. The company cited growth in its auto and cybersecurity units for its revenue beat. In response, BB is inching higher, last seen up 0.4% at $5.39.
Despite the mostly upbeat results, BlackBerry stock was hit with two price-target cuts. TD Securities slashed its price objective to $5 from $6.50, while CIBC cut its estimate by $3 to $5. The 12-month consensus price target now sits at $6.25, which is a 16.4% premium to Thursday's close. Meanwhile, of the seven analysts in coverage, five say "hold," and two say "sell."
BlackBerry stock has lost 42.6% this year on its journey back toward penny stock territory. However, the $5 level has kept some of these losses in check, and today the stock could notch its second-straight close above the 10-day moving average, which has helped guide the equity lower over the past year.