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 .
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BlackBerry shares fall 8% as cybersecurity outlook remains weak