BlackBerry (BBRY) Stock Gains on Possible Job Cuts
NEW YORK (TheStreet) — Shares of BlackBerry (BBRY- Get Report) were gaining 2.8% to $7.89 Tuesday following reports that the smartphone maker cut more jobs as part of CEO John Chen’s turnaround plan.
The company recently cut an undisclosed number of jobs, according to Bloomberg.
BlackBerry spokeswoman Kara Yi told Bloomberg the company remains focused on “driving efficiencies across our global workforce.
“As a result, some employees have been impacted,” Yi added.
The Waterloo, Ontario-based company told Reuters that some employees were shifted in its latest change, while others were laid off.
BlackBerry had a round of job cuts in May when it laid off an unspecified number of employees.
About 4.1 million shares of BlackBerry were traded by 2:45 p.m. Tuesday, compared to the company’s average trading volume of about 8.7 million shares a day.
Separately, TheStreet Ratings team rates BLACKBERRY LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
“We rate BLACKBERRY LTD (BBRY) a SELL. This is driven by a number of negative factors, 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.”
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has significantly decreased to $134.00 million or 55.62% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm’s growth rate is much lower.
- BBRY has underperformed the S&P 500 Index, declining 21.97% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The company’s current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, BLACKBERRY LTD’s return on equity significantly trails that of both the industry average and the S&P 500.
- The revenue fell significantly faster than the industry average of 32.7%. Since the same quarter one year prior, revenues fell by 31.9%. The declining revenue has not hurt the company’s bottom line, with increasing earnings per share.
- Despite currently having a low debt-to-equity ratio of 0.44, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company’s quick ratio of 3.28 is very high and demonstrates very strong liquidity.
- You can view the full analysis from the report here: BBRY Ratings Report
[“source – thestreet.com”]