Why BlackBerry Stock Jumped 16% in March

What happened

Shares of BlackBerry (NYSE: BB) gained 15.98% in value last month, according to data from S&P Global Market Intelligence.

BB Chart

BB data by YCharts

The company delivered a better-than-expected earnings report toward the end of March that sent the shares higher.

So what

Investors were encouraged by BlackBerry's performance on the bottom line that saw non-GAAP earnings per share more than double to $0.11 over the year-ago quarter. 

An outline of a blue security lock with a computer circuit lines extending off to the left and right side.


Revenue in the fourth quarter increased by 8% to $257 million, driven by strong growth from software and services of 16% year over year. The quarter marked a turning point in the company's transformation, as software and services revenue growth offset the decline in the legacy handset business. 

Now what

BlackBerry completed the acquisition of Cylance, a security technology business that boosts the company's position in enterprise services. In particular, it gives BlackBerry greater capabilities in artificial intelligence and machine learning for its cybersecurity business.

With growth from software and services now driving the company's top-line growth, the future looks bright. BlackBerry is well positioned for growth in enterprise, as noted by the recent deal to provide secure voice solutions for NATO, among other wins recently. The company's BlackBerry Government Solutions business is positioning to serve the U.S. government, but management is also looking to provide service for other countries. 

Revenue growth is expected to pick up to a range between 23% to 27% in fiscal 2020, led by growth in BlackBerry Technology Solutions and the Internet of Things business. Analysts currently expect the company to report earnings per share of $0.17 for the current year, up from $0.14 last year. 

10 stocks we like better than BlackBerry
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and BlackBerry wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of March 1, 2019

John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends BlackBerry. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More