Software developer BlackBerry Ltd. (BB, Financial) (TSX:BB, Financial) reported better-than-expected second-quarter 2019 results before the opening bell on Friday, sending U.S.-listed shares higher.
The Canadian company posted adjusted earnings of 4 cents per share, beating Thomson Reuters’ estimates of 1 cent.
Revenue was $214 million, topping expectations of $210 million.
The company attributed its performance to lower selling and marketing costs as well as research and development expenses, which helped offset a decline in enterprise software and services revenue.
BlackBerry, which was once at the forefront of the smartphone market before being dethroned by Apple’s (AAPL, Financial) iPhones and Android devices, has had to diversify its business to developing enterprise software for corporations and government agencies. Sales in this segment, which is the company’s largest business, fell 3% to $88 million during the quarter.
The technology solutions segment, which provides software based on its QNX platform for vehicles, saw sales grow to a record $49 million.
In a statement, CEO John Chen expressed his excitement for the opportunities in store.
“I am very encouraged by BlackBerry’s leadership opportunities in the fast-growing Enterprise of Things, and by our strategy to capitalize on these significant future opportunities with BlackBerry Spark, our platform to securely communicate and collaborate between smart endpoints,” he said.
BlackBerry also reaffirmed its guidance for the year. The company expects 8% to 10% revenue growth for software and services and positive adjusted earnings per share.
U.S.-listed shares of BlackBerry were up more than 16% on Friday morning at $11.88. GuruFocus estimates the stock has fallen 4% year to date.
Disclosure: No positions.
