Earnings Previews: BlackBerry, Carnival, Nike
After U.S. markets closed on Tuesday, Costco reported revenue and earnings per share (EPS) that were better than expected. Revenue rose 9.5% year over year and 1.5% sequentially. The good report initially induced investors to sell the news, but optimists pushed the share price up about 1.7% early Wednesday.
Before markets opened on Wednesday, Paychex also beat consensus estimates on the top and bottom lines. Revenue rose 6.7% sequentially and 6.6% year over year. Guidance was in line with expectations. Shares traded up by 2.1% shortly after Wednesday’s opening bell.
Accenture, CarMax and Micron will report quarterly earnings either after markets close on Wednesday (Micron) or before they open on Thursday (Accenture and CarMax).
Here is a look at three companies set to release results late Wednesday or early Thursday.
BlackBerry
Shares of BlackBerry Ltd. (NYSE: BB) have added almost 50% so far this year, cutting the 12-month share price decline from about 50% in late March to less than 2% at Tuesday’s close. That jump is largely the result of a patent sale that boosted revenue by $168 million. Back that amount out of May quarter earnings, and revenue fell by about 8% year over year. And sales in the company’s internet-of-things and cybersecurity businesses were down even more. A downbeat forecast delivered earlier this month sent shares down sharply. BlackBerry reports results late on Thursday.
Of 10 brokerages covering the stock, seven have Hold ratings while two rate it at Buy or Strong Buy. At a recent share price of around $4.90, the stock trades above its median price target of $4.75 and right at the high price target of $4.90.
Fiscal 2024 second-quarter revenue is forecast at $146.95 million, which would be down 60.6% sequentially and by 12.5% year over year. BlackBerry is expected to post an adjusted loss per share of $0.05, compared to the prior quarter’s per-share loss of $0.06 and equal to its loss in the year-ago quarter. For the fiscal year ending in February, the company is forecast to post EPS of $0.01 compared with a loss of $0.18 per share in the 2023 fiscal year. Revenue is forecast to rise by 32.3% to $867.57 million.
BlackBerry trades at 117.2 times estimated 2025 earnings of $0.04 and 31.1 times estimated 2026 earnings of $0.16 per share. Its 52-week trading range is $3.17 to $5.75. BlackBerry does not pay a dividend. Total shareholder return for the past year is negative 1.81%.
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Carnival Cruises
Since reporting first-quarter earnings in late March, shares of cruise ship operator Carnival Corp. & PLC (NYSE: CCL) had more than doubled their price by early July. Since posting a high on July 5, however, the stock has fallen by nearly 30%.
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