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Here’s Why BlackBerry Shares Are Popping Today

September 28, 2017

BlackBerry reported stronger-than-expected quarterly results and increased its fiscal-year revenue forecast after sales at its closely watched software business hit a record, sending its shares up more than 7% in Thursday premarket trading.

The Canadian company, which last year stopped manufacturing the iconic BlackBerry smartphone to focus on software, reported a profit of five cents a share before special items for the second quarter ended on Aug. 31, compared with break-even per share a year earlier.

Revenue fell to $249 million from $352 million a year earlier but rose slightly from $244 million in the prior quarter.

Analysts had on average expected BlackBerry to break even on revenue of $220 million, excluding items, according to Thomson Reuters.

Net income for the quarter was $19 million, or four cents per share.

Excluding restructuring costs and other items, BlackBerry said it expected fiscal-year revenue of $920 million to $950 million and positive earnings per share. It also forecast positive free cash flow.

The Waterloo, Ontario-based company is aiming to notch 10% to 15% software revenue growth for its fiscal year, which runs until the end of February.

BlackBerry (BBRY) said software and services revenue reached a record $196 million in the quarter, more than the estimates of $174 million from RBC analyst Paul Trieber and $176.2 million from Macquarie’s Gus Papageorgiou.