On Thursday, shares of BlackBerry rallied by more than 14% after the company posted a quarterly earnings report the beat most analyst forecasts.
The company whose shares traded up above 14% to trade at around $10.65 per share posted an earnings of $0.05 per share with their revenue totalling to $249 million. Analysts initially expected their revenue for the quarter to come at around $220 million. The company’s revenue from their services and revenue is now at around $56 million compared to their revenue from the sector of $16 million during the same period a year ago.
Blackberry’s revenue from their software and services rose by 26% year over the year. The upbeat earnings report reassured investors regarding the recent performance of the company. During the past year, the company has struggled with the growing smartphone market and competition. Analysts have now stated their relief that the company has now bigger chances of producing profits in the coming quarters.
Last year, the company known for their keyboard cell phones lost a huge chunk of their market share in the United States and has struggled since then to compete with smartphone manufacturers such as Apple and Samsung. BlackBerry also ended their smartphone production last year as they looked to focus on software development.
Their previous earnings report disappointed investors sent their shares tumbling by around 13% which was the biggest drop the stock have declined in the past two and a half years. The earnings report missed not only analysts estimates. The Canadian company also posted decline in the sales of their software businesses that weakened the overall outlook for their full-year earnings.
Investors also expected their software business to drive some growth during the previous quarter after the company boosted the business with a number of acquisitions. Blackberry chief executive officer John Chen then services business by the time the fiscal year ends by March next year. He assured analysts in an earnings call that revenue will grow during the year especially during the second half as their software sales force grows.
Chen also added that licensing will be one of the growth drivers in Blackberry’s overall business. The company head also added that they are looking to close a deal regarding an autonomous vehicle with a car manufacturing company later during the year. Aside from this, the company also stated that it recently reached a deal with a manufacturer from China to sell their Secure-branded devices as early as next year.
According to the company, they expect their full year revenue to reach at around $920 million to $950 million which is considerably higher than most estimates of $925 million for the fiscal year 2018.
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