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BlackBerry (BBRY) Up on Q2 Earnings Beat, Software Sales Rise
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Shares of BlackBerry Limited have rallied more than 21% since the release of strong second-quarter fiscal 2018 results last week. The company reported earnings per share (excluding 13 cents from non-recurring items) of 5 cents in second-quarter fiscal 2018 (ended Aug 31, 2017), comparing favorably with the Zacks Consensus Estimate of a loss of a penny. Results were boosted by robust software sales.
Results in Detail
Total revenue in the reported quarter was $249 million, down 25.4% year over year. However, the top line beat the Zacks Consensus Estimate of $231 million.
Segment-wise, Enterprise software and services generated approximately 41% of the revenues, while BlackBerry Technology Solutions contributed 15.3%. Licensing, IP and other raked in 22.5% of the revenues, whereas Handheld devices contributed 6.4%. Services access fees revenues accounted for the balance. Also, the company had around 3,300 enterprise clients on board in the reported quarter.
Geographically, North America has contributed to 55.9% of the total revenue. While Europe, the Middle East and Africa have notched up 31.9% of the revenue pie. Similarly, the Latin America and the Asia-Pacific regions have yielded 1.7% and 10.5% respectively, of the total revenue in fiscal second quarter.
Quarterly operating income (on an adjusted basis) came in at $29 million compared with $16 million in the year-ago quarter.
The company exited second-quarter fiscal 2018 with cash and cash equivalents of $586 million compared with $734 at the end of fiscal 2017. Long-term debt in fiscal second quarter was $739 million in comparison to $591 million at the end of fiscal 2017.
BlackBerry Limited Price, Consensus and EPS Surprise
The company expects revenues (adjusted) in the range of $920-$950 million for fiscal 2018. Software and Service revenues are estimated to rise between 10% and 15% for fiscal 2018. The company maintains its prior view of profitability (on an adjusted basis) as well as projects a positive free cash flow in fiscal 2018.
Shares of Vodafone, America Movil and TIM Participacoes have gained more than 8%, 23% and 11% respectively, in the last six months.
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BlackBerry (BBRY) Up on Q2 Earnings Beat, Software Sales Rise
Shares of BlackBerry Limited have rallied more than 21% since the release of strong second-quarter fiscal 2018 results last week. The company reported earnings per share (excluding 13 cents from non-recurring items) of 5 cents in second-quarter fiscal 2018 (ended Aug 31, 2017), comparing favorably with the Zacks Consensus Estimate of a loss of a penny. Results were boosted by robust software sales.
Results in Detail
Total revenue in the reported quarter was $249 million, down 25.4% year over year. However, the top line beat the Zacks Consensus Estimate of $231 million.
Segment-wise, Enterprise software and services generated approximately 41% of the revenues, while BlackBerry Technology Solutions contributed 15.3%. Licensing, IP and other raked in 22.5% of the revenues, whereas Handheld devices contributed 6.4%. Services access fees revenues accounted for the balance. Also, the company had around 3,300 enterprise clients on board in the reported quarter.
Geographically, North America has contributed to 55.9% of the total revenue. While Europe, the Middle East and Africa have notched up 31.9% of the revenue pie. Similarly, the Latin America and the Asia-Pacific regions have yielded 1.7% and 10.5% respectively, of the total revenue in fiscal second quarter.
Quarterly operating income (on an adjusted basis) came in at $29 million compared with $16 million in the year-ago quarter.
The company exited second-quarter fiscal 2018 with cash and cash equivalents of $586 million compared with $734 at the end of fiscal 2017. Long-term debt in fiscal second quarter was $739 million in comparison to $591 million at the end of fiscal 2017.
BlackBerry Limited Price, Consensus and EPS Surprise
BlackBerry Limited Price, Consensus and EPS Surprise | BlackBerry Limited Quote
Outlook
The company expects revenues (adjusted) in the range of $920-$950 million for fiscal 2018. Software and Service revenues are estimated to rise between 10% and 15% for fiscal 2018. The company maintains its prior view of profitability (on an adjusted basis) as well as projects a positive free cash flow in fiscal 2018.
Zacks Rank & Key Picks
BlackBerry currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Computer and Technology sector are Vodafone Group PLC (VOD - Free Report) , America Movil, S.A.B. de C.V. (AMX - Free Report) and TIM Participacoes S.A. . While Vodafone sports a Zacks Rank #1 (Strong Buy), America Movil and TIM Participacoes carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Vodafone, America Movil and TIM Participacoes have gained more than 8%, 23% and 11% respectively, in the last six months.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>