BlackBerry Ltd (NYSE: BB) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company reported its financial results for the fourth quarter, beating expectations and leading to excitement among investors. Of course, this sent the stock on a run for the top. Today, we’ll talk about the financial results, what we’re seeing from BB as a result, and what we’ll be watching for ahead.
BB Heads Up On Financial Results
As mentioned above, BlackBerry is having a pretty strong start to the trading session this morning after reporting its financial results for the fourth quarter. The results came by way of press release, issued by the company early this morning. In the release, the key highlight was the company’s high-margin software and services business. In fact, the company said that revenue from enterprise software and services rose by 19% to $108 million.
Ultimately, BB pointed out that the strong results were largely the result of gains in gross margins which rose to 76% of revenue, up from 60.1% year over year. As a result of the margin growth, the company generated a net loss of $10 million, which works out to $0.06 per share in the fourth quarter on revenue of $233 million. In the quarter ending on February 28th, the company generated a net loss of $47 million, which worked out to $0.10 per share. In a statement, John Chen, Executive Chairman and CEO at BB, had the following to offer:
I am very pleased with our execution. We achieved another record quarter in software and services revenue as we grew across all three of our software businesses. We also generated positive non-GAAP EPS and cash flow from operations for the fiscal year… Customers and partners recognize our technology innovation and market leadership. Blackberry’s market opportunities in unified endpoint management and embedded software are significant and synergistic, and our innovation and execution give us confidence to be a leader in the Enterprise of Things.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In the case of BlackBerry, the news was overwhelmingly positive. At the end of the day, the strong results show that the company is executing well with regard to its efforts to restructure and focus on the high-margin software and services business. As a result, it’s no surprise to see that the stock is making a run for the top in the marke today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:26), BB is trading at $12.98 per share after a gain of $0.58 per share or 4.68% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on BB. In particular, we’ll be watching for any updates with regard to the continued growth of the software and services sector of the company’s business as the transition to a full focus on this arm is a positive for the company’s bottom line. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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