Blackberry Stock Soars After Second Quarter Results

Shares of Blackberry Ltd. (TSX:BB)(NASDAQ:BBRY) were up 12.23% near the top of the noon hour on September 28. Blackberry released its fiscal 2018 second quarter results today. Results beat expectations and prompted the company to improve its annual forecast.

Revenue was up from the previous quarter to $249 million compared to $244 in the previous quarter. The company posted a profit of $0.05 per share compared to flat earnings in the same period last year. Net income was reported at $19 million or $0.04 per share.

Blackberry now expects a fiscal revenue between $920 to $950 million as well as positive earnings per share. Software and services revenue reached $196 million which beat analyst expectations. The company has undergone a significant transformation from a smartphone hardware company to focusing now on software and services.

Blackberry cybersecurity platforms are used by the United States government and many other top agencies worldwide. This is crucial in an environment in which the demand for cybersecurity will only increase. The recent Equifax Inc. breach that compromised the personal data of over 140 million Americans should only quicken the sense of urgency on the part of public and private enterprises to ensure top flight security against cyberattacks.

Blackberry is in a remarkable position to benefit from this demand. Shares have increased 40% in 2017 and 19% year over year. This is a comeback story that has room to run and has established itself in a market that is set to explode in the coming years.