Blackberry Says Its AtHoc Communications System Nearing Top Security Designation by US Government

Court: S.D. Florida

Case: 1:23-cv-23057

The lawsuit filed by investors against Robinhood has been dismissed, officially closing the case.

On January 29, 2021, while other brokers lifted stock purchase restrictions, Robinhood continued to restrict purchases and expanded restrictions to more stocks, which impacted market prices.

The company’s actions were claimed to have distorted bid-offer pricing mechanisms and contributed to investment losses for those holding call options on stocks like , , , , , and .

On April 6, 2023, shareholders brought a claim against Robinhood, which has now been dismissed.

Palo Alto Networks PANW delivered first-quarter fiscal 2025 non-GAAP earnings of $1.56 per share, which surpassed the Zacks Consensus Estimate by 5.4%. The figure improved 13% year over year, exceeding management’s guidance of $1.47-$1.49.

Palo Alto’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 7.6%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

PANW’s first-quarter fiscal 2025 revenues of $2.14 billion beat the Zacks Consensus Estimate by 0.93% and came marginally higher than management’s guidance of $2.10-$2.13 billion.

The top line rose 14% year over year, driven by an impressive performance across its segments. Additionally, the growing adoption of PANW’s Next-Generation Security platforms, driven by the hybrid work culture and a robust need for stronger security, also boosted first-quarter fiscal 2025 results.

Palo Alto’s impressive first-quarter results complemented by its strong market presence compelled it to raise guidance for the fiscal second quarter and full-year 2025. Better-than-expected fiscal first-quarter results, along with an optimistic outlook, are expected to pull up its shares. On a year-to-date basis, shares of PANW soared 26.8% compared with the Zacks Internet – Software industry’s return of 28%.

Palo Alto Networks, Inc. Price, Consensus and EPS Surprise

Palo Alto Networks, Inc. price-consensus-eps-surprise-chart | Palo Alto Networks, Inc. Quote

Palo Alto’s Q1 2025 Details

PANW’s strong top-line performance can be attributed to the immense year-over-year rise in its Subscription & Support revenues backed by a modest increase in its Product revenues.

Product revenues increased 3.7% year over year to $353.8 million and contributed to 16.5% of the total revenues. The company’s Subscription and Support revenues, which accounted for 83.5% of the total revenues, improved 16% to $1.79 billion.

Deferred revenues at the end of the fiscal first quarter were $ 5.51 billion. Palo Alto’s remaining performance obligation climbed to $12.6 billion, reflecting a year-over-year increase of 20%.

Palo Alto’s next-generation security annualized recurring revenues were $4.5 billion in the reported quarter, which grew 40% year over year and 6.6% from the previous quarter.

Non-GAAP gross profits increased 12.8% to $1.653 billion. The non-GAAP gross margin contracted 70 basis points (bps) to 77.3%. The non-GAAP operating income rose 16.4% to $544.9 million. Meanwhile, the non-GAAP operating margin expanded 60 bps to 28.8% compared with the year-ago quarter.

PANW’s Balance Sheet & Cash Flow

Palo Alto had cash and cash equivalents and short-term investments of $3.4 billion as of Oct. 31, 2024, compared with $2.56 billion as of July 31, 2024.

PANW generated an operating cash flow of $1.51 billion and a non-GAAP adjusted free cash flow of $1.47 billion in the first quarter fiscal of 2025.

Palo Alto Raises FY25 Guidance

For fiscal 2025, Palo Alto expects revenues between $9.12 billion and $9.17 billion, up from the earlier projected range of $9.10-$9.15 billion. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $9.13 billion, indicating a rise of 13.75%. Remaining Performance Obligation is still projected in the range of $15.2-$15.3 billion. Next-Gen Security ARR is estimated in the band of $5.52-$5.57 billion, up from the previous forecast of $5.42-$4.47 billion.

PANW’s fiscal 2025 non-GAAP operating margin is still projected in the range of 27.5-28%. Its adjusted free cash flow margin is still estimated in the range of 37-38%. The company expects non-GAAP earnings per share in the range of $6.26-$6.39, up from the previous guidance of $6.18-$6.31. The consensus mark for fiscal 2025 earnings is pinned at $6.26 per share, suggesting an improvement of 10.4%. The figure remains unchanged over the past 60 days.

For the second quarter of fiscal 2025, PANW projects revenues between $2.22 billion and $2.25 billion, which suggests year-over-year growth of 12-14%. The Zacks Consensus Estimate for second-quarter fiscal 2025 revenues is pegged at $2.23 billion, indicating a rise of 12.9%. Remaining Performance Obligations are anticipated between $12.9 billion and $13 billion. Next-Gen Security ARR is expected in the band of $4.70-$4.75 billion.

Non-GAAP earnings are projected in the range of $1.54-$1.56 per share. The Zacks Consensus Estimate for non-GAAP earnings is pegged at $1.55 per share, unchanged over the past 60 days, indicating a year-over-year improvement of 6.2%.

Zacks Rank & Other Stocks to Consider

Currently, PANW carries a Zacks Rank #2 (Buy).

Blackberry BB, Advantest ATEYY and Nutanix NTNX are some other top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector.

BB and ATEYY sport a Zacks Rank #1 (Strong Buy) each, while NTNX carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

BB shares have plunged 34.8% year to date. It is set to report third-quarter fiscal 2025 results on Dec. 19, 2024.

ATEYY shares have surged 80.3% year to date. It is slated to report its third-quarter 2024 results on Jan. 29, 2025.

NTNX shares have gained 45.6% year to date. It is set to report first-quarter fiscal 2025 results on Nov. 26.

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NVIDIA Corporation NVDA reported third-quarter fiscal 2025 earnings of 81 cents per share, which beat the Zacks Consensus Estimate by 8%. The reported figure soared 103% year over year and 19% sequentially, driven by higher revenues.

NVDA’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 12.7%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

NVDA’s fiscal third-quarter revenues beat the consensus mark by 5.6%. The top line climbed 94% year over year and 17% sequentially to $35.08 billion. The robust growth in the top line was mainly driven by record sales in the Data Center end market and higher sales across the Gaming, Professional Visualization and Automotive end markets.

Buoyed by an overwhelming fiscal third-quarter performance, NVIDIA provided strong guidance for the fiscal fourth quarter and raised the outlook for the full fiscal. Strong quarterly results, along with upbeat guidance, may further drive its share price higher. NVIDIA, a heavyweight in the semiconductor industry, has seen its stock surge 192.6% year to date, outperforming the Zacks Semiconductor – General industry’s return of 140.1%.

Segment Details of NVIDIA

NVIDIA reports revenues under two segments — Graphics and Compute & Networking.

The Graphics segment includes GeForce graphics processing units (GPUs) for gaming and personal computers, the GeForce NOW game-streaming service and related infrastructure. The segment also offers solutions for gaming platforms, Quadro GPUs for enterprise design, GRID software for cloud-based visual and virtual computing as well as automotive platforms for infotainment systems.

Graphics accounted for 11.5% of fiscal third-quarter revenues. The segment’s top line increased 16% year over year and 13% sequentially to $4.05 billion. Our estimate for the segment’s fiscal third-quarter revenues was pegged at $4.16 billion.

Compute & Networking represented 88.5% of fiscal third-quarter revenues. The segment comprises the Data Center platforms and systems for artificial intelligence, high-performance computing and accelerated computing, the DRIVE development platform for autonomous vehicles and Jetson for robotics as well as other embedded platforms.

Compute & Networking revenues surged 112% year over year and 17% sequentially to $31.04 billion. Our estimate for the segment’s fiscal third-quarter revenues was pegged at $28.4 billion.

NVIDIA Corporation Price, Consensus and EPS Surprise

NVIDIA Corporation price-consensus-eps-surprise-chart | NVIDIA Corporation Quote

NVIDIA’s Market Platform Top-Line Details

Based on the market platform, revenues from Data Center (87.7% of revenues) jumped 112% year over year and 17% from the previous quarter to $30.77 billion. This robust rise was mainly driven by higher shipments of the Hopper GPU computing platform that is used for the training and inference of large language models, recommendation engines and generative AI applications. Our estimate for this end-market’s fiscal third-quarter revenues was pegged at $28.5 billion.

NVIDIA witnessed strong demand for its chips used in the Data Center by all customers in both compute and networking markets. During the fiscal third quarter, large cloud providers represented half of Data Center revenues while the remaining stemmed from consumer Internet and enterprise companies.

Gaming revenues increased 15% year over year and 14% sequentially to $3.28 billion, accounting for 9.3% of the total revenues. The year-over-year rise reflected increased sales of its GeForce RTX 40 series family of GPUs and game console system-on-chips. Our estimate for the Gaming end-market’s third-quarter revenues was pegged at $3.11 billion.

Professional Visualization revenues (1.4% of revenues) increased 17% year over year and 6% sequentially to $454 million. The increase was primarily driven by the ramp of RTX GPU workstations based on the Ada architecture. Our estimate for the Professional Visualization end-market’s fiscal third-quarter revenues was pegged at $475.7 million.

Automotive sales (1.2% of revenues) in the reported quarter totaled $346 million, up 37% on a year-over-year basis and 7% sequentially. The increase was mainly driven by a rise in self-driving technology using NVIDIA Orin and robust demand for new autonomous vehicles (NAVs). Moreover, NVDA also experienced a surge in demand from Volvo, which is launching its fully electric SUV using NVIDIA Orin and DriveOS. OEM and Other revenues (0.3% of revenues) were up 33% year over year and 10% sequentially to $97 million. Our estimates for the Automotive and OEM end markets’ fiscal third-quarter revenues were pegged at $340.3 million and $86.8 million, respectively.

NVDA’s Operating Details

NVIDIA’s non-GAAP gross margin remained flat year over year at 75%. However, the non-GAAP gross margin contracted 70 basis points (bps) sequentially. The sequential decline was mainly due to a shift in the product mix toward more expensive H100 systems in the Data Center.

Non-GAAP operating expenses increased 50% year over year and 9% sequentially to $3.05 billion. The increase was due to higher development costs for new products introduced across compute, infrastructure and engineering development. However, as a percentage of total revenues, non-GAAP operating expenses declined to 8.7% from 11.2% in the year-ago quarter and 9.3% in the previous quarter.

The non-GAAP operating income jumped 101% year over year and 17% sequentially to $23.27 billion, driven by higher revenues. Non-GAAP operating margin improved 250 bps to 66.3% from the year-ago quarter’s 63.8% due to higher gross margin and lower operating expenses as a percentage of revenues. Sequentially, non-GAAP operating margin contracted 10 bps due to a reduction in gross margin.

NVIDIA’s non-GAAP net income margin of 57% for the fiscal third quarter improved 170 bps year over year and 60 bps sequentially.

Balance Sheet and Cash Flow

As of Oct. 27, 2024, NVDA’s cash, cash equivalents and marketable securities were $38.4 billion, up from $34.8 billion as of July 28. As of Sept. 27, the total long-term debt was $8.46 billion, which remained unchanged sequentially.

NVIDIA generated $17.63 billion in operating cash flow, up from the year-ago quarter’s $7.3 billion and the previous quarter’s $14.5 billion. In the first three quarters of fiscal 2025, it generated an operating cash flow of $47.5 billion. NVIDIA generated a free cash flow of $16.78 billion in the fiscal third quarter and $45.2 billion in the first three quarters of fiscal 2025.

In the fiscal third quarter, the company returned $245 million to shareholders through dividend payouts and repurchased stocks worth $11 billion. In the first three quarters of fiscal 2025, the company paid out $589 million in dividends and bought back stocks worth $25.9 billion.

On Aug. 26, 2024, NVIDIA’s board of directors approved a new $50 billion share repurchase authorization, bringing the total authorization to $57.5 billion, which has no expiration time. As of Oct. 27, 2024, the company has the remaining authorization of approximately $46.5 billion.

NVDA’s Q4 Guidance

For the fourth quarter of fiscal 2025, NVIDIA anticipates revenues to be $37.5 billion (+/-2%). The Zacks Consensus Estimate for the same is pinned at $36.84 billion.

The non-GAAP gross margin is projected to be 73.5% (+/-50 bps). Non-GAAP operating expenses are estimated to be $3.4 billion.

Zacks Rank & Other Stocks to Consider

Currently, NVDA sports a Zacks Rank #1 (Strong Buy).

Blackberry BB, Amphenol APH and Celestica CLS are some other top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector.

BB, APH and ATEYY sport a Zacks Rank #1 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus mark for Blackberry’s 2025 earnings has been revised upward by 3 cents to a loss of 2 cents per share over the past 60 days, indicating a 140% year-over-year decline. BB shares have plunged 34.8% year to date.

The consensus mark for Amphenol’s 2024 earnings has been revised upward by 2 cents to $1.17 per share over the past seven days, indicating a 58% year-over-year increase. The long-term expected earnings growth rate for the stock stands at 42.60%. APH shares have jumped 43% year to date.

The consensus mark for Celestica’s 2024 earnings has been revised upward by 20 cents to $3.85 per share over the past 30 days, indicating a 58.4% year-over-year increase. CLS shares have jumped 197.1% year to date.

Zacks Investment Research

The most recent trading session ended with BlackBerry (BB) standing at $2.35, reflecting a -1.67% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.4%. Elsewhere, the Dow saw a downswing of 0.28%, while the tech-heavy Nasdaq appreciated by 1.04%.

Shares of the cybersecurity software and services company have depreciated by 7.36% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.18% and the S&P 500's gain of 0.62%.

Analysts and investors alike will be keeping a close eye on the performance of BlackBerry in its upcoming earnings disclosure. The company's earnings report is set to go public on December 19, 2024. On that day, BlackBerry is projected to report earnings of -$0.02 per share, which would represent a year-over-year decline of 300%.

BB's full-year Zacks Consensus Estimates are calling for earnings of -$0.02 per share and revenue of $603 million. These results would represent year-over-year changes of -140% and -29.31%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for BlackBerry. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, BlackBerry holds a Zacks Rank of #1 (Strong Buy).

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Zacks Investment Research

BlackBerry Limited , in partnership with the Canadian government and the Toronto Metropolitan University, launched a cybersecurity training initiative in Southeast Asia, backed by a C$3.9 million ($2.7 million) investment.

Canada’s support, delivered through BlackBerry in partnership with TMU’s Rogers Cybersecure Catalyst, aims to train 3,500 cyber-defenders from Malaysia and other ASEAN countries.

This initiative strengthens global public-private collaboration against rising digital threats, aligns with Canada’s Indo-Pacific strategy, and positions Malaysia as a regional hub for cybersecurity excellence in Southeast Asia.

Canada’s support will enhance the Malaysia Cybersecurity Center of Excellence (CCoE) in Cyberjaya with a comprehensive cybersecurity curriculum, including programs for women.

The initiative aims to prepare talent for high-demand cybersecurity roles, position the CCoE as a regional hub, and strengthen government and industry capabilities to address cyber threats and safeguard national security.

BlackBerry CEO John Giamatteo commented, “As the beating heart of the region’s cyber-threat defense capabilities, this world-class facility helps train and upskill Malaysian and regional cyber workforces, and is also an international destination to address emerging cyber threats and coordinate regional incident response.”

“In a growing digital economy, no matter how advanced your cybersecurity arsenal is, nations must have a well-trained cyber-workforce to bolster their front lines of defense.”

The Rt. Hon. Justin Trudeau, Prime Minister of Canada said, “With our government’s investment in Malaysia’s Cybersecurity Center of Excellence in collaboration with BlackBerry, Canada will share cyber-expertise, train the cyber workforce across ASEAN countries, increase public-private sector collaboration, and strengthen our collective capacity to counter, deter and respond to cyber threats.”

This month, the company announced that Hyundai Mobis has selected BlackBerry QNX to power its next-generation digital cockpit platform.

Hyundai Mobis will use BlackBerry’s QNX Hypervisor for Safety and QNX Advanced Virtualization Frameworks (QAVF) for its next-generation digital cockpit platform.

Last month, the company announced details of profitability for its IoT and Cybersecurity divisions, including strategic options for the Cylance business.

Price Action: BB shares are up 0.42% at $2.37 premarket at the last check Monday.

Read Next:

• BlackBerry’s Path To Profitability In Question, Analyst Cites Cybersecurity Struggles and Sluggish IoT Growth

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

CyberArk Software CYBR reported third-quarter 2024 non-GAAP earnings of 94 cents per share, which surpassed the Zacks Consensus Estimate of 45 cents. The bottom-line figure also showed a robust year-over-year improvement of 123.8%.

The solid year-over-year bottom-line performance was primarily driven by higher revenues, better cost management and increased financial income, partially offset by a higher number of outstanding shares.

CyberArk’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 97.7%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

CyberArk’s third-quarter 2024 revenues of $240.1 million exceeded the consensus mark by 2.7%. The top line jumped 26% year over year, primarily driven by the company’s robust dominance in identity security and world-class execution levels at every step while delivering an integrated platform with all sorts of solutions across the workforce from IT to developers and machines.

Buoyed by strong quarterly performance, CyberArk raised guidance for 2024 and issued impressive guidance for the fourth quarter. Strong third-quarter results, along with an impressive outlook, are expected to pull up its shares. On a year-to-date basis, shares of CyberArk soared 33.1% compared with the Zacks Computers - IT Services industry’s return of 16.3%.

CyberArk’s Q3 Details

CyberArk’s strong top-line performance can be attributed to the immense year-over-year rise in its Subscription revenues, partially offset by Maintenance and Perpetual Licenses.

Segment-wise, Subscription revenues (73.1% of the total revenues) were $175.6 million, up 42.9% from the year-ago quarter. Our estimate for Subscription revenues was pegged at $166.2 million.

CyberArk Software Ltd. Price, Consensus and EPS Surprise

CyberArk Software Ltd. price-consensus-eps-surprise-chart | CyberArk Software Ltd. Quote

Maintenance and professional services revenues (25.7% of the total revenues) were $61.6 million, lower than the year-ago quarter’s $64.3 million. Our estimate for Maintenance and professional services revenues was pegged at $63.4 million.

Perpetual license revenues (1.2% of the total revenues) plunged to $2.9 million from $4.1 million in the year-ago quarter. The decline reflects the company’s continued efforts toward shifting the business model to subscription-based from a perpetual license. Our estimate for Perpetual license revenues was pegged at $3.7 million.

CyberArk’s non-GAAP gross profit increased 26.7% year over year to $200.3 million. Moreover, the non-GAAP gross margin expanded 70 basis points (bps) to 83.4%, primarily driven by robust revenue growth.

The non-GAAP operating income increased 109.5% year over year to $35.4 million, while the operating margin expanded 590 bps to 14.7%.

CyberArk’s Key Business Metrics

In the third quarter, Annual Recurring Revenues (ARR) were $926 million, up 31% year over year. The Subscription portion of ARR was $735 million, or 79% of total ARR as of Sept. 30, 2024, up 46% year over year.

The Maintenance portion of ARR was $191 million as of Sept. 30, 2024, compared with $200 million as of Sept. 30, 2023. Recurring revenues in the third quarter were $224.2 million, up 29% from the third quarter of 2023.

CYBR’s Balance Sheet & Cash Flow

CyberArk had cash and cash equivalents, marketable securities and short-term deposits of $1.5 billion as of Sept. 30, 2024, compared with $1.4 billion as of June 30, 2024.

Long-term debt was $646.3 million as of Sept. 30, slightly higher than $646.1 million as of June 30.

Cash flow from operations was $54.2 million, up from $44.3 million as of June 30, 2024. Free cash flow was $51.6 million compared with the previous quarter’s $41.7 million.

During the first nine months of 2024, CyberArk generated $167.2 million of cash from operational activities.

CyberArk Raises FY24 Guidance

CyberArk raised guidance for 2024. The company now expects 2024 revenues in the range of $983-$989 million, up from the previous guidance of $932-$948 million. The Zacks Consensus Estimate for revenues is pegged at $939.1 million, suggesting a year-over-year rise of 24.9%.

It now expects non-GAAP operating income between $135 million and $140 million, up from the earlier projection of $107.5-$116.5 million. The company now estimates its non-GAAP earnings in the range of $2.85-$2.96 per share, up from the previous forecast of $2.17-$2.36 per share. The Zacks Consensus Estimate for earnings is pegged at $2.30 per share, indicating a year-over-year rise of 105.4%.

ARR, as of Dec. 31, 2024, is expected to be in the range of $1.153-$1.163 billion, indicating an increase of 49-50% year over year. The company expects free cash flow between $203 million and $213 million.

CyberArk also initiated guidance for the fourth quarter. For the fourth quarter, it expects revenues to be in the band of $297-$303 million, suggesting year-over-year growth of 33-36%. The Zacks Consensus Estimate for revenues is pegged at $258.5 million, suggesting a year-over-year rise of 15.8%.

Non-GAAP operating income is expected to be in the range of $43.5-48.5 million. Non-GAAP earnings per share are anticipated between 65 cents and 75 cents. The Zacks Consensus Estimate for earnings is pegged at 54 cents per share, indicating a year-over-year decline of 33.3%.

Zacks Rank & Other Stocks to Consider

Currently, CYBR sports a Zacks Rank #1 (Strong Buy) at present.

Blackberry BB, Amphenol APH and Advantest ATEYY are some other top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector.

BB, APH and ATEYY sport a Zacks Rank #1 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

BB shares have plunged 31.1% year to date. It is set to report third-quarter fiscal 2025 results on Dec. 19, 2024.

APH shares have jumped 45.9% year to date. It is slated to release fourth-quarter 2024 results on Jan. 22, 2025.

ATEYY shares have surged 79.8% year to date. It is slated to report its third-quarter 2024 results on Jan. 29, 2025.

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