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What to Expect from BlackBerry’s Earnings and Revenue Growth

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Jun. 11 2019, Published 10:05 a.m. ET

Revenue estimated to rise by 24.7% in fiscal 2020

BlackBerry was once the market leader in the smartphone market. However, the entry of tech giants such as Apple and the overwhelming success of Samsung coupled with the glut of cheaper smartphone manufacturers from China and India compelled BlackBerry to exit this market a couple of years back.

However, under John Chen’s leadership, who took over as BlackBerry CEO in 2013, the company has turned its fortunes around by switching from the intensely competitive hardware business to a profitable software business. As BlackBerry pivoted from its smartphone business, sales fell from $6.8 billion in 2014 to $916 million in 2019. BlackBerry will return to revenue growth for the first time in several years in fiscal 2020.

Analysts expect BlackBerry’s revenue to rise 24.7% YoY to $1.14 billion in 2020 compared to $916 million in 2019. Its sales are further expected to rise 11.6% to $1.27 billion in 2021 and 5.1% to $1.34 billion in 2022.

In comparison, its non-GAAP EPS are expected to fall by a significant 62.5% in 2020 to $0.09 from $0.24 in 2019. The company’s EPS are then expected to rise 133.3% to $0.21 in 2021.

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BlackBerry will post positive EBITDA in 2020

Driven by revenue and margins growth, BlackBerry’s EBITDA are expected to rise from $140 million in 2020 to $247 million in 2021.

Analysts also estimate the company’s operating profit to rise from $33.6 million in 2020 to $88.8 million in 2021.

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