BlackBerry Ltd (NASDAQ: BBRY) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company released earnings shortly after announcing a partnership with Delphi. The earnings proved to be overwhelmingly positive, causing excitement among investors and sending the stock toward the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:03), BBRY is trading at $9.73 per share after a gain of $0.50 per share or 5.42% thus far today.
BBRY Reports Strong Earnings
As mentioned above, BlackBerry is having a strong start to the trading session this morning after reporting its earnings for the second fiscal quarter. Of course, earnings were positive, leading to excitement among investors and gains in the value of the stock. Here’s what we saw from the report:
- Earnings Per Share – In terms of earnings per share, BBRY definitely did not disappoint. During the quarter, analysts expected that the company would report earnings in the amount of $0.02 per share. However, the company actually reported earnings in the amount of $0.05 per share, blowing away expectations with reported earnings more than double what analysts were looking for.
- Revenue – Revenue also proved to be a big hit. During the quarter, analysts expected that BBRY would generate revenue in the amount of $221.18 million. However, the company actually generated revenue in the amount of $249 million, once again blowing away expectations.
- Guidance – As if strong earnings and revenue wasn’t enough to cause excitement, BlackBerry also reported incredibly strong guidance. During the fiscal 2018, the company said that it is expecting for revenue to come in the range between $920 million and $950 million. If this is correct, the company will beat street expectations of $919.53 million.
Delving Into The Delphi Deal
The earnings caused a nice bump upward in the value of BBRY. However, it wasn’t the only thing that helped. In fact, investors are still excited about the recent announcement that the company joined forces with Delphi Automotive Plc (NYSE: DLPH). This deal is a massive one for BlackBerry as the push toward autonomous vehicles continues to grow around the world. With the agreement between BBRY and DLPH, the companies will be working together to bring BlackBerry’s technology further into the autonomous vehicle space. As a result, some argue that this agreement will push the value of the stock to $20 per share or higher over time.
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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 BBRY. In particular, we’re interested in following the company with regard to ongoing software growth as well as their relationship with Delphi as these two factors will likely lead to massive growth over time. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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