NEW YORK (TheStreet) -- Shares of Tuesday Morning (TUES) - Get Report were falling 13.1% to $11.46 on heavy trading volume Tuesday following the announcement that CFO Jeffrey Boyer resigned from his position at the retailer.
Boyer resigned from the position of Executive Vice President, Chief Administrative Officer, and CFO effective as of July 22, 2015. Boyer will take on the role of CFO at Pier 1 Imports (PIR) - Get Report effective July 27.
Tuesday Morning said it is working with an executive search firm to find a replacement for Boyer. Vice President and Controller, Kelly Munsch will take responsibility for Tuesday Morning's accounting and finance functions on an interim basis until a replacement is announced.
About 1.3 million shares of Tuesday Morning were traded by 10:39 a.m. Tuesday, above the company's average trading volume of about 540,000 shares a day.
TheStreet Ratings team rates TUESDAY MORNING CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate TUESDAY MORNING CORP (TUES) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TUES's revenue growth has slightly outpaced the industry average of 2.1%. Since the same quarter one year prior, revenues slightly increased by 3.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- TUESDAY MORNING CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, TUESDAY MORNING CORP continued to lose money by earning -$0.24 versus -$1.34 in the prior year. This year, the market expects an improvement in earnings ($0.32 versus -$0.24).
- TUES has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.38 is very weak and demonstrates a lack of ability to pay short-term obligations.
- Net operating cash flow has decreased to -$8.74 million or 13.24% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- TUES has underperformed the S&P 500 Index, declining 23.91% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- You can view the full analysis from the report here: TUES Ratings Report