What happened Shares of BlackBerry Limited (NYSE: BB), the once-smartphone maker transformed into a security software specialist, crashed in Friday morning trading, and are now down 11.5% as of 11:05 a.m. EST. The drop comes after BlackBerry reported earnings that it described as "solid" yesterday evening, and ahead of analyst expectations. Yet the shares are still down. Why? Image source: Getty Images. So what From a pro forma perspective, BlackBerry did exceed expectations. Adjusted earnings for the fiscal third quarter 2020 were $0.02 per share, versus the $0.01 per share loss analysts had predicted. Quarterly adjusted sales of $224 million likewise exceeded forecasts for $219.7 million. But here's the thing: According to generally accepted accounting principles (GAAP), revenue was only $218 million, an 18% decline from the second quarter last year. BlackBerry's gross profit margin on those sales also tanked, falling 590 basis points to land at just 68.3%. Result: Despite making deep cuts to both research and development and other operating costs, BlackBerry's operating loss for the quarter quadrupled to $127 million, and the company's GAAP net loss more than tripled to $0.23 per share. Now what In short, BlackBerry management could make all the arguments it wanted about the quarter being "solid" -- but the numbers still look pretty glaringly bad. In total, BlackBerry has now racked up $830 million in losses over the past 12 months. Revenue is sliding and profit margins deteriorating. Although the company is still generating cash ($56 million over the past year), at a current valuation of 83 times FCF, the stock looks overpriced to me -- even after today's sell-off. 10 stocks we like better than BlackBerryWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and BlackBerry wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends BlackBerry. The Motley Fool has a disclosure policy.Source