BlackBerry Ltd. (NASDAQ: BBRY)
If you’re a tech stock junkie like myself, chances are that you’ve heard a thing or two about BlackBerry. Maybe you’ve heard about the unfounded Goldman Sachs downgrade! Maybe you’ve read as analyst after analyst talked about why BlackBerry was the worst investment you could make, why the stock is destined for failure, and why today’s earnings report was set to disappoint. Today, BBRY sent a clear message to Goldman Sachs and all of the analysts, micro-bloggers, and investors that doubted them… We can and will generate profits! Today, we’ll take a look at BlackBerry’s earnings report in comparison to analyst expectations and talk about where we can expect the stock to move going forward.
BlackBerry Earnings Report Blew Expectations Out Of The Water
If you’ve followed the news surrounding today’s release of the BlackBerry earnings report, you were probably ready for an upset. Most analyst predicted that losses would expand this quarter; even I thought we’d see losses (Not as big of losses as most analysts, but losses nonetheless). However, BBRY surprised us all. Here’s what we saw in their earnings report today before the bell…
- Net Profit – BlackBerry produced a net profit of $28 million in the fourth quarter.
- Earnings Per share – $0.05
- Revenue – Overall revenue fell below analyst expectations; coming in at $660 million.
- Software Revenue – Rose 20% year over year to $67 million.
- Positive Cash Flow – $76 million.
- Cash Position – $3.27 billion
While overall revenue was more than $100 million below analyst expectations, the company was able to generate a profit; blowing overall expectations away. Investors ate the news up; pushing the stock more than 5% higher in early trading today.
Where Will BlackBerry Go Next
I’ve caught quite a bit of flack from the StockTwits.com community and other investing communities for my bullish views on BlackBerry. However, as I’ve said in the past, it’s time to start looking past the smartphone. Sure, BBRY sells smartphones, but that’s no longer their core business. With continued innovation and a heavy involvement in the build of what’s becoming known as the internet of things, I think this one is destined for growth in the long term.
What Do You Think?
Are you bullish or bearish on BBRY? Why? Let us know in the comments below!