NEW YORK (TheStreet) -- Analysts expected paltry third-quarter earnings from BlackBerry (BBRY) on Friday but no one expected them quite so bad. A wider-than-expected loss indicated turnaround attempts from the beleaguered smartphone maker had yet to take root.
The Ontario-based business reported a net loss of 67 cents a share, deeper in the red than the loss of 43 cents a share analysts polled by Thomson Reuters had expected. Revenue of $1.2 billion was 56% lower than a year ago and missed consensus by $460 million.
Though earnings were off, details of a new deal with Foxconn inspired hope the company could turn itself around. BlackBerry announced it had entered into a five-year strategic partnership with the Taiwanese electronics manufacturer to develop devices for emerging markets, beginning with Indonesia in early 2014.
"Partnering with Foxconn allows BlackBerry to focus on what we do best -- iconic design, world-class security, software development and enterprise mobility management -- while simultaneously addressing fast-growing markets leveraging Foxconn's scale and efficiency that will allow us to compete more effectively," said CEO John Chen in a statement.
By mid-morning, shares had rallied 3.2% to $6.45. Year to date, the stock has dropped 47.6%.
TheStreet Ratings team rates BLACKBERRY LTD as a Sell with a ratings score of D. The team has this to say about their recommendation:
"We rate BLACKBERRY LTD (BBRY) a SELL. This is driven by multiple 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 feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."