BlackBerry Ltd. (NYSE: BB) reported its fiscal first-quarter financial results before the markets opened on Friday. Even before Friday’s move, BlackBerry was actually beating the broad markets in 2018, a step in the right direction for this company. If it can keep up the pace, BlackBerry just might be on to something.
The company said that it had $0.03 in earnings per share (EPS) and $213 million in revenue, while consensus estimates that called for breakeven earnings on revenue of $209 million. The same period of last year reportedly had $0.02 in EPS and $244 million in revenue.
During the quarter, software and services revenue increased 14% year over year to $193 million. Total software and services billings grew double-digits from last year.
In the same time, the company noted a gross margin of 75.6% for the quarter, a solid increase from the same period last year which had 63.8%.
Looking ahead to the fiscal 2019 full year, the company expects to see total company software and services billings growth in the double digits, positive EPS, and software and services revenue growth between 8% and 10%. Consensus estimates from Thomson Reuters are calling for $0.06 in EPS and $886.06 million in revenue for the year.
On the books, BlackBerry cash, cash equivalents and short-term investments totaled $2.25 billion at the end of the quarter.
John Chen, executive chair and CEO of BlackBerry, commented:
We are off to a solid start in fiscal 2019, with 14% year-over-year growth in total software and services revenue driven by strong double-digit billings and an increase in recurring revenue. I am pleased that BlackBerry QNX software is now embedded in over 120 million automobiles worldwide, doubling the install base in the last three years. We are very excited about the opportunities ahead of us in automobiles and in other EoT verticals.
Shares of BlackBerry traded down more than 8% Friday morning to $10.75, with a consensus analyst price target of $11.73 and a 52-week trading range of $8.47 to $14.55.