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BlackBerry's profit tops estimates on lower costs

Key Points
  • BlackBerry is trying to win investor confidence and make money by selling software to manage mobile devices to corporations and government agencies.
  • U.S.-listed shares of the company were up 2.7 percent premarket.
  • The company earned 4 cents per share, beating analysts' average estimate of 1 cent. 
John Chen, chief executive officer of BlackBerry Ltd., holds the BlackBerry Priv smartphone.
SeongJoon Cho | Bloomberg | Getty Images

BlackBerry reported quarterly profit above Wall Street's estimates on Friday, as lower expenses helped offset a drop in its enterprise software and services revenue.

U.S.-listed shares of the company were up 2.7 percent premarket.

BlackBerry, which dominated the smartphone market nearly a decade ago before losing out to Apple's iPhones and Android devices, has been trying to win investor confidence and make money by selling software to manage mobile devices to corporations and government agencies.

The company's expenses fell in the quarter. Selling and marketing costs dropped about 6 percent to $106 million, while research and development costs fell 15 percent.

Enterprise software and services revenue, the company's biggest, fell 3 percent to $88 million in the second quarter ended Aug. 31.

On a per share basis, the company reported a loss of 4 cents, compared with a loss of 8 cents per share in the year-ago quarter.

Excluding items, the company earned 4 cents per share, beating analysts' average estimate of 1 cent, according to Thomson Reuters I/B/E/S.

Total revenue fell 13 percent to $210 million.

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Investing

RBC hikes Apple price target, citing strong demand for expensive iPhones

Key Points
  • Consumers' intentions to purchase an iPhone increased to 26 percent versus 20 percent last year, an RBC survey found, with 68 percent of respondents hoping to buy higher-tier memory models.
  • "We think demand for this generation iPhones – XS Max/XS/XR - is robust and average selling prices and gross margins could improve," analyst Amit Daryanani says.
  • Daryanani hikes his price target, revenue and earnings per share estimates on Apple.