BlackBerry shares soar 5% after reporting Q2 2017 earnings and the end of hardware manufacturing

BlackBerry shares soar 5% after reporting Q2 2017 earnings and the end of hardware manufacturing
Wall Street got some of the news it was expecting from BlackBerry today. Last week, we passed along a report from investment blog The Motley Fool, which correctly predicted that the manufacturer would close its hardware division on September 28th. Leaving hardware to others was good enough news to send BlackBerry's shares soaring nearly 5% this morning to $8.36.

BlackBerry also reported its fiscal second quarter 2017 earnings and you can see why it is dropping hardware manufacturing. GAAP software and services revenue reached $334 million for the three month period, rising a strong 89% year-over-year. Non-GAAP revenue for the pair hit $352 million, a year-over-year gain of 111%. 81% of this revenue is recurring, and the company reported 3,000 enterprise customer wins for the three month period ended August 31st.

Hardware reported an $8 million operating loss for the quarter. Overall, Non-GAAP operating earnings came to $16 million resulting in a breakeven earnings per share figure. GAAP operating income showed a loss of $355 million. As usual, BlackBerry has a large amount of  cash, cash equivalents, short-term and long-term investments ($2.5 billion) socked away on the balance sheet as of the end of the quarter.

BlackBerry has revised upward its full fiscal year non-GAAP EPS estimate. Previously, the company was forecasting a loss of 15 cents a share. It now expects to report in a range of breakeven to a loss of five cents a share for fiscal 2017.

source: MarketWired


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