BlackBerry Ltd (BBRY) Earnings Surprise – Shares Up Big in Pre-Market

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Shares of BlackBerry Ltd (NASDAQ:BBRY) are trading up $0.45 or 5.77% in the pre-market this morning as the company released better than expected third quarter earnings. The company beat analyst expectations on both the top and bottom lines, reporting third quarter revenue of $557 million, and a loss of 17 cents per share (3 cents per share after adjustments). Analysts were looking for $493 million in revenue and a loss of 14 cents per share. Revenue for the same period last year came in at $548 million.

“BlackBerry has a solid financial foundation, and we are executing well,” Chief Executive John Chen stated. “To sustain our current direction, we are stepping up investments to drive continued software growth and the additional Priv launches. I anticipate this will result in sequential revenue growth in our software, hardware and messaging businesses in our software, hardware and messaging businesses in Q4.”The stock decreased 4.65% or $0.38 during the last trading session, hitting $7.8. Approximately 205,660 shares traded hands. BBRY shares have declined 24.49% since May 15, 2015 and are currently downtrending. It has underperformed the S&P500 by 22.23%.

From a total of 13 analysts covering Blackberry (NASDAQ:BBRY) stock, 0 rate it a “Buy”, 2 a “Sell”, and 11 a “Hold”. This means that 0 of the ratings are positive. The highest target price is $8 while the lowest target price is $6. The mean of all analyst targets is $7.28 which is -6.67% below today’s ($7.8) stock price. Blackberry was the topic of 17 analyst reports since July 28, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on December 14 with a “Sector Perform” rating. Canaccord Genuity maintained shares with a”Hold” rating and a $8 target share price in their report from a September 21. Imperial Capital maintained BBRY stock in a recent report from September 29 with a “In-Line” rating. Morgan Stanley upgraded the rating on July 28. Morgan Stanley has a “Equal Weight” rating and a $7 price target on shares. Finally, UBS maintained the stock with a “Neutral” rating in a report they issued on a September 28.

BlackBerry Limited is a well-known provider of mobile communications and services. The company has a market cap of $4.31 billion. The Firm is engaged primarily in the provision of the BlackBerry wireless solution, consisting of smartphones, service and software. It currently has negative earnings. The Company’s four areas of business are Devices business, Enterprise Services, BlackBerry Technology Solutions (BTS) business and Messaging.

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