Blackberry stock rallies after topping Wall Street estimates

Blackberry stock rallies after topping Wall Street estimates

Blackberry Ltd. shares rallied in the extended session Wednesday after the cybersecurity and Internet-of-Things company exceeded Wall Street expectations for the quarter.

Blackberry BB, 9.05% shares surged 9% after hours, following a 2% rise in the regular session to close at $9.56.

The company reported a fiscal second-quarter loss of $144 million, or 25 cents a share, compared with a loss of $23 million, or 4 cents a share, in the year-ago period.

The adjusted loss, which excludes stock-based compensation expenses and other items, was 6 cents a share, compared with earnings of 10 cents a share in the year-ago period.

Revenue declined to $175 million from $259 million in the year-ago quarter. Cybersecurity revenue contributed $120 million.

Analysts surveyed by FactSet had forecast a loss of 8 cents a share on revenue of $161.9 million.

“Revenue for all businesses beat expectations this quarter,” said John Chen, BlackBerry chairman and chief executive, in a statement. “The cybersecurity business unit delivered robust sequential billings and revenue growth and the IoT business unit performed well in the face of global chip shortage pressures.”

The company also announced that John Giamatteo will head the cybersecurity business unit starting Oct. 4. Giamatteo recently served as president and chief revenue officer of McAfee Corp. MCFE, 1.84%

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