BlackBerry Q3 Earnings: Record Software and Services Revenue

Mid cap mobile device and smartphone stock BlackBerry Ltd (NASDAQ: BB) reported fiscal Q3 2018 earnings before the market opened on Wednesday with shares closing up 11.96%. Revenues were $226 million versus$289 million. There was record software and services revenue of $199 million (non-GAAP) and $190 million (GAAP) which brokethe record set last quarter while approximately 75% of third quarter software and services revenue (excluding IP licensing and professional services) was recurring plus the Companyhad approximately 3,000 enterprise customer orders in the quarter. The GAAP net loss for the quarter was $275 million versus a net loss of $117 million. Total cash, cash equivalents, short-term and long-term investments were approximately $2.5 billion as of November 30, 2017. Executive Chairman and CEO John Chen 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.”

“Our strategy is working and our execution is yielding results. We are a market leader in secure endpoint management and embedded software. The validation we have received, from partners, customers and industry experts around the world, speaks for itself.”

“BlackBerry’s market opportunity is significant and, based on our progress so far in FY18, I am pleased with our near-term outlook and longer-term potential.”

We have had BlackBerry Ltd in our Elite Opportunity Pro (EOP) portfolio off and on in thepast as a potential turnaround trade or as a purely speculative trade on the Companys potential value if broken up. The last time we recommended the stock was at the end of March just asthe stockbegan to take off with shares now breaking outabove a key resistance level:

A long term performance chart shows the performance of mid cap BlackBerry Ltd heading back to breakeven levels whilethe performance of Samsung Electronics (OTCMKTS: SSNLF) and Apple Inc (NASDAQ: AAPL) have beenrising since last year:

Finally, here is a quick recap of mid cap BlackBerry Ltds earnings history along with EPS estimate trends from the Yahoo! Finance analyst estimates page going into the current earnings report:

Earnings History11/29/20162/27/20175/30/20178/30/2017
EPS Est. -0.01 0 0 0
EPS Actual 0.02 0.04 0.02 0.05
Difference 0.03 0.04 0.02 0.05
Surprise % 300.00% N/A N/A N/A
EPS TrendCurrent Qtr. (Nov 2017)Next Qtr. (Feb 2018)Current Year (2018)Next Year (2019)
Current Estimate 0 0.01 0.06 0.08
7 Days Ago 0 0.01 0.06 0.08
30 Days Ago 0 0.01 0.06 0.08
60 Days Ago 0 0.01 0.06 0.08
90 Days Ago 0.01 0.02 0.04 0.08

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