Shares in Research In Motion Ltd(NASDAQ:BBRY) rose more than 7 percent on Wednesday after Morgan Stanley raised the rating on the stock to Buy citing an increase in profit margins due to the sales of the new Blackberry 10 phones.
MS analyst Ehud Gelblum said that as existing users upgrade to newer phones, it should “meaningfully” drive up profitability and the average selling price for a BlackBerry, two key benchmarks for the company.
He estimates that gross margin — the percentage of sales left after production costs — reached 33 percent in February, up from 31.6 percent in November.
Gelblum has raised the rating on the stock to Overweight from Underweight and the price target to 422 from $10 a share earlier.
Blackberry had released its new operating system in January which was followed by the launch of its first smartphone, the touchscreen Z10 in more than 20 countries. It will make its but in the US on Friday.
Williams-Sonoma, Inc.(NYSE:WSM) reported a 9 percent jump in its fourth quarter net income beating market expectations.
The company earned $133.7 million, or $1.34 per share, for the quarter ended Feb. 3. That is compared to net income of $122.6 million, or $1.17 per share, the prior year. Its total revenue increased nearly 11 percent to $1.41 billion from $1.27 billion with gains in sales made in stores, online and from its catalogues.
Analysts expected the company to earn $1.29 per share on revenue of $1.4 billion for the period.
The company said that it is increasing its quarterly cash dividend by 41 percent to 31 cents per share. The dividend is payable May 24 to shareholders of record April 26. It also plans to buy back up to $750 million of its stock over the next three years under a share repurchase program.
It expects to earn $2.65 to $2.75 per share for the year on revenue between $4.20 billion and $4.28 billion. Analysts were expecting the company to earn $2.82 per share on revenue of $4.23 billion.
Shares of the company soared 10.50% to $49.92.