: BlackBerry stock suffering biggest selloff in 2 years after revenue guidance was below expectations


The U.S.-listed shares of BlackBerry Ltd. BB, -13.54% BB, -13.21% took a 13.1% beating in midday trading Tuesday, after the Ontario-based security software company said it would take a large impairment charge and provided revenue guidance that below Wall Street projections. The stock was headed for the worst one-day performance since it plunged 21.1% on Feb. 2, 2021. The company said late Monday that its fiscal fourth-quarter results would include a goodwill impairment charge of up to $440 million for its Spark business. The company also said it expects fourth-quarter revenue of approximately $151 million, which was below the FactSet consensus at the end of February of $163.5 million. the company expects revenue for its cybersecurity business of about $88 million, which was below the FactSet consensus as of Feb. 28 of $109.7 million, and for its internet of things (IoT) business of about $53 million, which was below expectations of $54 million. “Macro challenges were a key factor for BlackBerry’s Cybersecurity business unit this quarter, with elongated sales cycles in government causing some large deals to slip into later quarters,” said Chief Executive John Chen. BlackBerry’s stock has tumbled 20.7% over the past three months, while the ETFMG Prime Cyber Security exchange-traded fund HACK, -0.68% has gained 4.1% and the S&P 500 SPX, -1.11% has tacked on 1.9%.

This article was originally published by Marketwatch.com. Read the original article here.

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