Stock News for Investors: Blackberry reported profit growth in the second quarter, while Air Canada cuts its guidance.
BlackBerry said earnings per share for the quarter were 4 cents per share on an adjusted basis, compared with zero cents per share a year ago.
The company’s latest quarter revenue totaled $129.6 million, up from $126.2 million a year ago. The growth was due to revenues in its QNX segment rising to $63.1 million from $54.7 million a year ago, while secure communications revenue fell to $59.9 million, compared to $66.5 million. Licensing revenue was $6.6 million, up from $5 million in the same period last year.
Blackberry said it now expects full-year revenue to be $519 million to $541 million, up from the early guidance, with a price of $508 million to $538 million.
The company also increased guidance on adjusted earnings per share adjusted revenue for the full year, with our expectations being the U.S. to 15 cents, which is our early expectations for the 8 cents U.S. and 10 cents.
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Air Canada lowered full-year guidance, causing strikes estimated at $375 million
Air Canada (TSX:AC)
Adjustment guidance for this year:
- Previous: $3.2 billion to $3.6 billion
- Adjustment: $2.9 billion to $3.1 billion
Air Canada lowered its guidance for a year after it was attacked by a flight attendant strike earlier this summer. The Montreal-based airline said in a press release that it estimated the cost of labor disruptions to $375 million in operating income and adjusted earnings, taxes, taxes, depreciation and amortization.
Air Canada said it is now expected to earn $2.9 billion to $3.1 billion in adjusted EBITDA over the entire year. Compared to the 2025 guide that the airline suspended in August, the guidance is expected to adjust EBITDA to $3.2 billion to $3.6 billion.
Air Canada said in the third quarter that its operating capacity will drop about 2% from the same period last year due to cancellation of more than 3,200 flights. It also expects operating income for the quarter to be between $250 million and $300 million.
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The airline said the $375 million financial impact of the strike was three factors in total. First is the estimated income of refunds, customer compensation and lower travel bookings. It also has an incremental cost of approximately $90 million associated with customer reimbursement and some labor operation costs. However, the company also saved $145 million, mainly due to lower fuel costs, thus reducing losses.
The Air Canada flight attendant’s strike lasted for three days and ended on August 19, although it took longer to complete the full operation.
Earlier this month, Air Canada’s flight attendant rejected the employer’s wage offer on a massive scale, and the airline said the wage portion will now be pointed to mediation previously agreed by both parties.
The tentative transaction voted to raise wages for workers and determines the wage structure for hours when the aircraft works on the ground.
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