Why BlackBerry Stock Rose Last Month



BBRY’s rising shares in April

BlackBerry’s (BBRY) shares have risen more than 35% in the past month, after a disappointing 2016, which saw losses of 28%. BlackBerry has generated returns of 42% in the trailing-12-month period.

BlackBerry reported revenue of $286 million in fiscal 4Q17, as compared to $464 million in fiscal 4Q16. The company’s EPS (earnings per share) rose from -$0.03 in fiscal 4Q16 to $0.04 in 4Q17.

Analysts expect the firm to post revenue of $289 million, with EPS of $0.01, in fiscal 4Q17. BlackBerry further expects a non-GAAP (generally accepted accounting principles) net profit and positive free cash flow in fiscal 2018.

The stock rose more than 15% on April 12, 2017, on the news that the firm had overpaid Qualcomm (QCOM) in royalty payments worth $800 million.

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BlackBerry banks on software to drive revenue

BlackBerry (BBRY) has three primary business segments: Software and Services, Mobility Solutions, and Service Access Fees. Software is BlackBerry’s most profitable operation, and the firm working to strengthen that business. BlackBerry generated $497 million in revenues from its Software business in fiscal 2016 and in fiscal 2017, revenue in this segment rose 39% YoY (year-over-year) to $687 million.

BlackBerry expects that the TAM (total addressable market) in the Software and Services business will rise to $17.6 billion in 2019, up from $4.9 billion in 2015 and $525 million in 2012.

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