BlackBerry's shares jump after Q3 results beat estimates

By StocksReuters

Rudy Giuliani partners with Blackberry CEO John Chen to combat cyber-attacks

Fmr. NYC Mayor Rudy Giuliani and Blackberry CEO John Chen talk about their partnership to combat cyber threats during the Consumer Electronics Show in Las Vegas.

TORONTO, Dec 20 (Reuters) - Canada's BlackBerry Ltd (NYSE:BB) reported third-quarter results on Wednesday that beat analysts' forecasts, helped by an increase in business software sales and licensing revenue, sending its stock up more than 7 percent in premarket trading.

Continue Reading Below

The company reported adjusted earnings of 3 cents a share in the quarter ended Nov. 30, better than the average analyst forecast for it to break even, according to Thomson Reuters I/B/E/S. Quarterly revenue fell 25 percent from a year earlier to $226 million, beating the average forecast of $215.4 million.

"It's pretty impressive, beating on both the top and bottom lines," said Ali Mogharabi, an analyst at Morningstar. "The growth specifically in enterprise software is good to see."

The Waterloo, Ontario-based company said sales in its enterprise software and services division rose 11.5 percent from a year ago to $97 million.

Its U.S.-listed shares rose 7.5 percent to $11.69 in premarket trading.

(Editing by Jim Finkle and Bernadette Baum)