BlackBerry reports Q2 profit up from year ago, tops analysts’ expectations

BlackBerry reports Q2 profit up from year ago, tops analysts’ expectations
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WATERLOO, Ont. — BlackBerry Ltd.’s second-quarter profit beat expectations as the company says it’s looking to further expand in automotive and break into the health-care space.

The software company, which keeps its books in U.S. dollars, said Friday it earned US$43 million or eight cents per basic share in its latest quarter, more than double earnings of $19 million or four cents per basic share a year ago.

On an adjusted basis, BlackBerry said it earned four cents per share for the quarter, while Thomson Reuters Eikon said analysts on average had expected a profit of a penny per share.

The results helped push the company’s shares up 93 cents or seven per cent to $14.20 in mid-morning trading on the Toronto Stock Exchange.

Revenue totalled $210 million, down from $238 million in the same quarter last year, though the company booked record high quarterly revenue for its BlackBerry Technology Solutions thanks to growth in its automotive division.

“Transportation, especially when it comes to autonomous driven vehicles and connected car, that unit had done the best in the last quarter,” John Chen, BlackBerry’s executive chairman and chief executive, said in an interview.

The sector’s revenue growth hit 29 per cent year over year with more to come, said Chen.

“It will continue to grow double-digit for the next couple quarter, so we think that is a big growth opportunity for BlackBerry.”

Total cash, cash equivalents, short-term and long-term investments were $2.4 billion as of Aug. 31.

 

 

Companies in this story: (TSX:BB)

 

The Canadian Press

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