NEW YORK (TheStreet) -- Shares in the Canadian mobile solution provider BlackBerry (BBRY - Get Report) soared 7% higher in premarket trading after hitting it out of the park on Friday's earnings release.
OK, maybe it was a double, not a home run, but analysts were expecting little more than a single. The quarterly loss was 80 cents per share, for a total of $423 million for the fourth quarter ending March 1.
The total loss for the fiscal year was an eye-popping $5.9 billion. Revenue continues to trend lower at a disappointing $976 million, less than half the $2.7 billion in the comparable year-ago quarter. Analysts anticipated $1.17 billion in sales, and the company's operational margin improved.
On an adjusted non-GAAP basis, the operational loss was $42 million, or 8 cents per share. That's significantly better than the consensus estimated loss of 56 cents per share.The results also provide BlackBerry's latest CEO John Chen much-needed breathing room to continue executing his strategy to bring the overwhelmed company back from the dead. I'm impressed with the results. Plus, this follows my bull thesis that I laid out in a Real Money Pro trade idea. Friday's surprise earnings release helps validate my bull thesis. I've come out bullish in my recent articles, "BlackBerry's Party Is Just Getting Started" and "BlackBerry Chart Suggests Volatility." After BlackBerry allowed Apple (AAPL) iPhones and Google (GOOG) Android phones to snatch market share, the company was left with little more than intellectual property and its enterprise solutions. Even Microsoft (MSFT) has turned Windows Mobile around and is once again making gains in both market share and total units deployed. Unlike Microsoft and Google, BlackBerry has more or less abandoned the low-end consumer level mobile hardware business and has finally partnered with a third-party manufacturer to fill that shrinking need. BlackBerry's renewed enterprise focus appears to be paying off, and is a significant factor in why I turned bullish. That's where the profit is.