Last year, BlackBerry (BBRY) also acquired a German (EWG) company, Secusmart, allowing BlackBerry to enhance the security of its enterprise devices. Until then, BlackBerry used built-in security measures only for BBM messages and enterprise emails. Secusmart enhances security related to BlackBerry data, messaging, voice, and text communication as well.
With Secusmart and WatchDox, BlackBerry now offers a complete portfolio for enterprise security, including secure voice, text, emails, messages, and files.
Competition in the enterprise mobile market increasing
BlackBerry’s security-related acquisitions come at a time when the enterprise mobile market is heating up. Last year, VMWare (VMW) acquired AirWatch for $1.18 billion to enhance its enterprise mobile management and security solutions. Then, Google (GOOG)(GOOGL) acquired Divide, which used to focus on the security of Android devices used by enterprises.
Last year, Apple (AAPL) also forged a partnership with IBM (IBM) to gain a presence in the enterprise segment. Apple is already seeing some positive results from this partnership , which now presents a threat to BlackBerry.
It will be important for BlackBerry to continue to innovate in this market if it’s to meet its revenue targets in the software segment. BlackBerry made $238 million in revenues from its software segment in fiscal 2015. In fiscal 2016, it has nearly doubled that target to $500 million.
The chart above shows BlackBerry’s software segment’s revenue for the last few fiscal quarters.
BlackBerry Equity Analysis
BlackBerry Ltd (NASDAQ:BBRY) opened trading today as $10.16 and is trading in the range of 9.78-10.27 today. BlackBerry’s current market cap stands at $5.37 billion.
BlackBerry is currently covered by 36 Wall Street analysts. The mean target price is $9.15 according to First Call. This presents a solid downside to the current price of the equity. The Mean Recommendation sits at 3.3 which is based on 1 Strong Buy, 2 Buy and 20 Hold ratings.
The most recent analyst actions consisted of Imperial Capital initiating the stock on October 7th and Oppenheimer initiating coverage with an upgrade rating back in April.
The current quarter EPS consensus estimate is -0.03 with revenue estimates of 717.38M. Sales are expected to drop at a 25.70% rate. BlackBerry reported actual earnings last quarter of 0.04 which beats the -0.05 consensus estimate, a 180.00% surprise.
Corporate Profile
BlackBerry Limited provides wireless communications solutions worldwide. The company offers BlackBerry wireless communications platform solution, which includes the sale of BlackBerry handheld devices; and the provision of data communication, and compression and security infrastructure services enabling BlackBerry handheld wireless devices to send and receive wireless messages and data. Its technology also enables third party developers and manufacturers to enhance their products and services through software development kits, wireless connectivity, data, and third-party support programs. The company’s portfolio of products, services, and embedded technologies include the BlackBerry wireless solution, the BlackBerry Wireless Handheld product line, the BlackBerry PlayBook tablet, software development tools, and other software and hardware. It also provides BlackBerry smartphones; BlackBerry Enterprise Service 10, an enterprise mobility management product; QNX software for embedded systems market; and BBM, instant mobile to mobile private messaging service. In addition, the company offers development platform that allows third party commercial and enterprise software developers to build and deploy custom applications to run on BlackBerry smartphones; products and technologies to third party developers, wireless carriers, and enterprise customers to develop, distribute, and manage these applications; and a suite of software development tools. Further, it provides the BlackBerry Messenger Social Apps Platform; and push, payments, advertising, location, maps, analytics, and Scoreloop services, as well as repair and maintenance services. BlackBerry sells its BlackBerry wireless solutions through wireless communications carriers and third party distribution channels. The company was formerly known as Research In Motion Limited and changed its name to BlackBerry Limited in July 2013. BlackBerry Limited was founded in 1984 and is headquartered in Waterloo, Canada.