BlackBerry Ltd (NASDAQ:BBRY) Stocks Tick Up On Good News
BlackBerry Ltd (NASDAQ:BBRY) stock on the latest day of trading on Tuesday saw a surge of more than 10%. There are many reasons for this rise in the stock and although BlackBerry hasn’t really been doing that great in recent memory, the company is certainly riding a high wave at the moment.
The New York Department of Defense announced recently that the company’s smartphones could take over the devices used in one of the department’s new areas by as much as 98%. This is big news for a company that has essentially been struggling for a while now. It was announced by the Defense Information Systems Agency that around 80,000 Blackberry phones would kick start the Department of Defense’s management system. This process would be started by end of January.
Analysts upbeat, yet cautious
Although analysts are upbeat about the new rise in prices, they are still not jumping the gun when it comes to the stock. The stock for BlackBerry is rated as a sell stock with a score of D. Analysts from the Street ratings team said that the rating was driven by the company’s weaknesses in many areas namely slow growth, declining income and a disappointing return on the equity. All in all the stock for BlackBerry has been performing poorly in recent times and analysts seem to have taken a cue from this.
Reasons behind the caution
Earning per share (EPS) for BlackBerry Ltd has seen a decline in the latest quarter when compared to results from the same quarter in 2012. This is a trend that has been with the company since 2 years and the company has also reported a loss per share of $1.20 in the past fiscal year.
The company has underperformed as compared to Q4 in 2012, the net income has decreased by a substantial margin; falling from $9 million to -$4401 million which is a whopping number by any standards. Besides that, the company is also suffering in the areas of return of equity and net operating cash flow and despite the fluctuations in the markets; usually bad news is the constant companion for the company’s stock.