Christmas Came Early: BlackBerry Is Wednesday’s Biggest Earnings Winner

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When BlackBerry Ltd. (NYSE: BB) reported its fiscal third-quarter financial results before the markets opened on Wednesday, the firm posted $0.03 in earnings per share (EPS) on $235 million in revenue. Consensus estimates had called for breakeven earnings on revenue of $215.42 million. The same period of last year reportedly had EPS of $0.02 and $301 million in revenue.

During the quarter, BlackBerry tallied record software and services revenue of $199 million, breaking the record set in the fiscal second quarter. The firm also noted a record gross margin of 77%, again breaking the record from the previous quarter.

One highlight came after the quarter closed. BlackBerry announced, in partnership with Denso, that they have started development of the world’s first integrated human-machine interface platform. Intel is collaborating in the development of this product as well.

In terms of the outlook for the fiscal full year, the company expects to see revenue in the range of $920 million to $950 million, positive EPS for the full year and software and services revenue growth between 10% and 15%. The consensus estimates call for $0.06 in EPS and $927.19 million in revenue for the fiscal year.

On the books, BlackBerry cash, cash equivalents and short-term investments totaled $2.42 billion at the end of the quarter, up from $1.38 billion at the end of the previous fiscal year.

John Chen, executive chair and chief executive of BlackBerry, commented:

Our momentum continues, with the delivery of a strong third quarter; I am very pleased with our results. Our progress, in both our financial and strategic objectives, is notable. We achieved records in software and services revenue and total company gross margin; breaking the records we set last quarter. We expanded our position in key verticals and geographies, with many new partners and highly competitive customer wins.

Shares of BlackBerry traded up over 9% to $11.88 Wednesday, with a consensus analyst price target of $10.32 and a 52-week range of $6.99 to $12.36.

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