In its most-recent quarter, BlackBerry (BB) delivered a revenue and earnings beat. The stock rose over 11% on the news. This was another solid earnings report. Consistent revenue and earnings growth going forward may be too optimistic. I explain below.
BlackBerry’s Core Businesses Deliver Again
BlackBerry’s total revenue of $210 million was off 12% Y/Y. CEO John Chen is working hard to transition the company to the software and services space. SAF and Handset revenue continue to run off, and both were down by over 65% Y/Y. They represented a combined 8% of BlackBerry’s total revenue, down from 22% in the year earlier period. Over the next few quarters, I expect these two segments to be less of a drag on the company’s top-line growth.
