BlackBerry Ltd (NASDAQ:BBRY) shares are down 1.14% today to $8.72, adding to their 4.5% decline yesterday, after the company reported weak fiscal first-quarter results with sales and pro forma EPS below consensus estimates. Subsequently, analysts of Oppenheimer and Canaccord weighed in with a few insights on the results.

Oppenheimer analyst Andrew Uerkwitz reiterated a Perform rating on BBRY, while no price target was provided.

Uerkwitz noted, “BlackBerry reported F1Q16 revs/non-GAAP EPS of $658M/-$0.05, below consensus $682M/-$0.03 but above our $590M/-$0.13. BBRY’s F1Q16 handset unit sales were in line with our bearish view; however, better than expected ASP and strong software revenues (led by licensing!) contributed to better-than-expected results. BBRY reiterated its focus on profitability and cautious optimism. BBRY continues to cut costs in its handset business, but we now think it faces irreversible deterioration.”

The analyst concluded, “We believe BlackBerry has executed well to grow its Software revenues from core enterprise customers and tuck-in acquisitions. However, we believe a turnaround in the Device business will prove to be difficult.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Andrew Uerkwitz has a total average return of 7.0% and a 60.4% success rate. Uerkwitz has a -9.4% average return when recommending BBRY, and is ranked #723 out of 3640 analysts.

Walkley wrote, “BlackBerry reported weak Q1/F16 results with sales and pro forma EPS below our below-consensus estimates. While reclassified software and technology licensing revenue was well above our and consensus software only estimates, the strong sales were driven by significant one-time payments from the two technology licensing deals signed during the quarter. In fact, management lowered its overall F’16 software-related sales expectations from $600M to ~$500M due to lower BBM expectations. Also, the $500M includes licensing revenue versus prior expectations not implying licensing revenue.”

Furthermore, “Based on management’s FY16 growth expectations for the core EMM business, we believe BlackBerry faces the challenging task of selling not just EMM subscriptions but must also upsell increasing amounts of VAS and close additional technology licensing deals to meet its lowered FY16 targets. Further, we believe the continued steep decline in high margin services business and ongoing tepid hardware sales will remain a headwind to meaningful profitability during FY16/FY17.”

Out of the 28 analysts polled by TipRanks, 3 rate BlackBerry stock a Buy, 18 rate the stock a Hold and 7 recommend Sell. With a return potential of 9.3%, the stock’s consensus target price stands at $9.60.