NEW YORK (TheStreet) -- BlackBerry (BBRY) stock rallied on Friday, closing up by 10.38% to $8.61 on heavy trading volume, after the company reported financial results that exceeded expectations for the fiscal 2016 third quarter.

Before the market open this morning, the mobile communications company posted a loss of 3 cents per share on $557 million in revenue for the quarter ended November 28, beating estimates of a loss of 14 cents on revenue of $489.04 million.

"BlackBerry hit a software number that investors have been looking for them to hit for quite some time," Morningstar analyst Brian Colello told Reuters. "I think the investment in security, in software, is the right move."

Software and services revenue increased by 183% year-over-year to $162 million for the latest quarter, accounting for 29% of total revenue. About 70% of the software revenue was recurring.

By the end of the trading day 44.9 million shares of BlackBerry had exchanged hands, compared with its average daily volume of 6.69 million shares.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate BLACKBERRY LTD as a Sell with a ratings score of D. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: BBRY

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