Why BlackBerry Stock Plunged Today

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What happened

Shares of BlackBerry (NASDAQ: BBRY) have plunged today, down by 11% as of 11:45 a.m. EDT, after the company reported fiscal first-quarter results that fell short of expectations.

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So what

Non-GAAP revenue in the first quarter totaled $244 million, which was shy relative to the $263 million in sales that analysts were expecting. On the bottom line, BlackBerry posted non-GAAP earnings per share of $0.02, which was better than the consensus estimate of breakeven.

Nearly 80% of software and services revenue came from recurring sources, and BlackBerry said it had over 3,000 enterprise customer orders during the quarter.

Now what

In a statement, CEO John Chen said that the company "made great progress strengthening our strategic position in emerging growth markets" such as cybersecurity and the Enterprise of Things. Chen said that BlackBerry's "financial foundation is solid," and expects it to be profitable on a non-GAAP basis for the full-year fiscal 2018. BlackBerry has also decided to initiate a share repurchase program, and is authorized to repurchase up to 31 million shares, which represents roughly 6.4% of outstanding public float.

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Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.