Shares of BlackBerry were up more than 14% in morning trading Thursday, just after the company posted its second-quarter earnings report. A shift to a software focus is paying off for the Canadian tech giant, and investors are ecstatic about the company’s surprise profit and improved guidance.
Before special items and one-time costs, BlackBerry posted earnings of five cents per share, beating the Zacks Consensus Estimate of a one cent loss. Revenues were down nearly 30% to $249 million, but that was enough to surpass our consensus estimate of $231 million.
Last year, BlackBerry stopped manufacturing its iconic smartphone to focus on software. In the latest quarter, software and services revenue was up 26% year-over-year. Thanks to these results, BlackBerry said that it now expects full-year revenue between $920 and $950 million, which is higher than our current consensus estimate of $918.5 million.
BlackBerry’s shift to software was a polarizing decision, and the company has garnered both legions of fans and hordes of detractors on the internet. For some, today’s report is a sign that management made the right call. For others, it will take more than a few positive earnings announcements to prove anything.
Here at Zacks, we like to keep an eye on these conversations, especially as they play out on social media. Check out at few of our favorite reactions from Twitter:
And of course, the community at StockTwits was also talking about BlackBerry this morning:
$BBRY very very heavy overhead resistance @ 11-12 if this stock clears it can run all the way until 18-20.
— Anton (@ruffryders) Sep. 28 at 10:07 AM
$BBRY WOW life changing results this could be the start of something huge down the road long n strong.
— charles (@Donbosco) Sep. 28 at 09:54 AM
$BBRY. Yesterday I was considering putting my life's savings in this before ER. Didn't, but dannnnnggg
— Dubs Mitch (@mtnrunnr) Sep. 28 at 09:04 AM
$BBRY WOW everyone who bought this 5 yrs ago is almost EVEN $, almost congrats lol
— Tokin Bull (@Tokin_Bull) Sep. 28 at 09:47 AM
As you can see, plenty of investors are excited, but there are some bearish investors out there too. How do you feel about BlackBerry after today’s report? Join the conversation with ZacksResearch on StockTwits and Twitter!
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
Image: Bigstock
Investors React to BlackBerry's Surprise Profit
Shares of BlackBerry were up more than 14% in morning trading Thursday, just after the company posted its second-quarter earnings report. A shift to a software focus is paying off for the Canadian tech giant, and investors are ecstatic about the company’s surprise profit and improved guidance.
Before special items and one-time costs, BlackBerry posted earnings of five cents per share, beating the Zacks Consensus Estimate of a one cent loss. Revenues were down nearly 30% to $249 million, but that was enough to surpass our consensus estimate of $231 million.
Last year, BlackBerry stopped manufacturing its iconic smartphone to focus on software. In the latest quarter, software and services revenue was up 26% year-over-year. Thanks to these results, BlackBerry said that it now expects full-year revenue between $920 and $950 million, which is higher than our current consensus estimate of $918.5 million.
BlackBerry’s shift to software was a polarizing decision, and the company has garnered both legions of fans and hordes of detractors on the internet. For some, today’s report is a sign that management made the right call. For others, it will take more than a few positive earnings announcements to prove anything.
Here at Zacks, we like to keep an eye on these conversations, especially as they play out on social media. Check out at few of our favorite reactions from Twitter:
And of course, the community at StockTwits was also talking about BlackBerry this morning:
As you can see, plenty of investors are excited, but there are some bearish investors out there too. How do you feel about BlackBerry after today’s report? Join the conversation with ZacksResearch on StockTwits and Twitter!
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>