Shares of BlackBerry (BB -2.74%) dropped on Wednesday after the company reported mixed fourth-quarter results. Double-digit revenue growth fell short of analyst expectations, while adjusted earnings were higher than expected. The stock was down about 18% at 1:15 p.m. EDT.
BlackBerry reported fourth-quarter adjusted revenue of $291 million, up 13% year over year but about $5.3 million below the average analyst estimate. Adjusted software and services revenue grew 16% to $287 million. Non-GAAP (adjusted) earnings per share came in at $0.09, ahead of analyst expectations by $0.05.
For the full fiscal year, the tech company reported adjusted revenue of $1.099 billion and non-GAAP EPS of $0.13. "In fiscal 2020, we ... released over 30 new products and made strong progress on developing BlackBerry's zero-trust architecture as part of the Spark platform. This is essential for the secure IoT market," said CEO John Chen.
BlackBerry declined to provide fiscal 2021 financial guidance due to the uncertainty associated with the novel coronavirus pandemic. Chen did provide some details, though, about the expected impact during the earnings call. Sales will likely be negatively affected by slumping global auto sales, although sales of certain products and services could get a boost from the explosion in remote work. The company expects a tough first quarter, with a strong recovery in the second half.
BlackBerry stock has not performed well during the past year. The stock is now down about 67% from its 52-week high.