NEW YORK (TheStreet) -- Shares of BlackBerry (BBRY)  are up by 0.28% to $7.05 in after-hours trading on Thursday, ahead of the release of the company's second quarter earnings results, due out tomorrow before the opening bell.

The Canadian mobile communications company is expected to report a second quarter net loss of 9 cents per share on revenue of $603.5 million for the most recent quarter.

Those totals are down from the 2 cents per share loss and $916 million in revenue the company reported for the year ago period.

BlackBerry reported 2013 revenue of $11.1 billion and 2014 revenue of $6.8 billion.

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 few notable weaknesses, 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's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 31.25%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 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 36.9%. 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