Shares of BlackBerry (BB 2.12%) jumped on Friday, rising 10.3% by 12:40 p.m. EST.
The stock's gain followed the enterprise security software and services company's fiscal third-quarter update. The Street's optimistic response to the report likely reflects BlackBerry's acceleration in non-GAAP (adjusted) revenue growth and its better-than-expected bottom line. In addition, investors are likely pleased with management's upbeat outlook for full-year profitability.
BlackBerry reported fiscal third-quarter non-GAAP revenue of $280 million, up 23% year over year. This marks an acceleration from the 22% year-over-year adjusted revenue growth BlackBerry posted in fiscal Q2.
Earnings per share were $0.03, down from $0.05 in the year-ago quarter but ahead of a consensus analyst forecast for $0.02.
CEO John Chen was happy with the company's progress, noting that it "achieved sequential growth in revenue across all of our software businesses while generating healthy non-GAAP profitability and free cash flow as we continue to invest in our future."
Chen said, "Our pipeline is growing as we deliver against our product road map and execute on our go-to-market expansion."
During the company's earnings call, Chen said the company expects to do better than analysts' current consensus forecast for fiscal 2020 non-GAAP earnings per share:
For fiscal 2020, we are comfortable with the current consensus estimate for the total company, which is approximately $1.1 billion in non-GAAP revenue and $0.06 in non-GAAP profitability. However, based on the year-to-date performance, we expect to do better than the $0.06 in the non-GAAP profitability. Our current forecast indicates more like $0.08 of earnings per share in fiscal 2020.