BlackBerry Limited BB is scheduled to report third-quarter fiscal 2025 results on Dec. 19.

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The Zacks Consensus Estimate is pegged at a loss of 2 cents per share, unchanged in the past 60 days. The company reported earnings per share of 1 cent in the prior-year quarter.

The company’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average earnings surprise of 131.25%.

Factors at Play for BB’s Fiscal Q3

BB’s performance is expected to have benefited from strength in the automotive segment, particularly solid demand for its solutions across the advanced driver assistance systems market and digital cockpit domain.

Apart from Auto, the rapid adoption of the QNX platform in the General Embedded market is a positive factor. Continued design win momentum is anticipated to have further strengthened the QNX royalty backlog. Strong revenues from royalties, especially production-based royalties, are likely to have acted as tailwinds.

Healthy uptake in the SecuSmart, UEM endpoint management and AtHoc critical events management solutions are likely to have benefited the Cybersecurity business. Extensive cost cutting including headcount reductions and facility closures is likely to have cushioned margin and bottom-line performance.

BlackBerry Limited Price and EPS Surprise

BlackBerry Limited price-eps-surprise | BlackBerry Limited Quote

Weakness in development seat revenues is a concern. The development seat revenues remained muted in the last reported quarter. Management expects significant delays in the ramp-up of automaker software development programs to continue to remain an overhang on the development seat revenues in the near term. The company also added that these delays have extended QNX development cycles and have an “even greater impact” on IVY.

The company expects fiscal third-quarter revenues to be in the band of $146-$154 million. For the cybersecurity business, revenues are estimated to be in the range of $86-$90 million. For the IoT business, revenues are expected to be in the range of $56-$60 million. Licensing & Other revenues are expected to be $4 million.

What Our Model Says for BlackBerry

Our proven model does not conclusively predict an earnings beat for BlackBerry this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

BlackBerry currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks that you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.

RPM International Inc. RPM is set to announce quarterly figures on Jan. 7. RPM currently has an Earnings ESP of +0.67% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RPM’s to-be-reported quarter’s earnings and revenues is pegged at $1.35 per share and $1.78 billion, respectively. Shares of RPM have risen 18.6% in the past year.

Accenture ACN presently has an Earnings ESP of +1.45% and a Zacks Rank #3. ACN is slated to release quarterly numbers on Dec. 19. The Zacks Consensus Estimate for ACN’s to-be-reported quarter’s earnings and revenues is pegged at $3.38 per share and $17.18 billion, respectively. Shares of ACN have gained 4.9% in the past year.

Paychex Inc PAYX currently has an Earnings ESP of +0.53% and a Zacks Rank #3. PAYX is scheduled to report quarterly earnings on Dec. 19. The Zacks Consensus Estimate for PAYX’s to-be-reported quarter’s earnings and revenues is pegged at $1.12 per share and $1.31 billion, respectively. Shares of PAYX have surged 10.3% in the past year.

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