11:15 AM EST, 12/16/2024 (MT Newswires) -- BlackBerry (BB) is expected to report positive adjusted earnings before interest, taxes, depreciation, and amortization in Q3 due to additional cost reductions, even though revenue is forecast to decline year-over-year, RBC Capital Markets said in a note Monday.

Analysts, including Paul Treiber, said that they expect Q3 revenue to be mostly flat at $150 million, which is down 14% year-over-year, and in line with the consensus of $151 million. They forecast $5 million in adjusted EBITDA and an adjusted loss per share of $0.01 for Q3. The analysts also said that BlackBerry's profitability could exceed expectations if further cost reductions are achieved, which could be a positive catalyst for the stock.

BlackBerry's workforce decreased by 4% through Q4, bringing the total year-over-year reduction to 11%, RBC said citing LinkedIn. The company has achieved $135 million in annual cost savings out of its $150 million target, the analysts said, adding that they expect the company to maintain its full-year 2025 adjusted EBITDA guidance of breakeven to $10 million, suggesting further margin growth in Q4 and positive free cash flow.

RBC maintained a sector perform rating and $3 price target on BlackBerry. Shares of the company rose past 15% in recent trading activity.

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