GEE Group, Inc. (JOB), a company that provides permanent and temporary professional, industrial, and physician assistant staffing and placement services, has surged 10.35% in aftermarket trading session. As a result, JOB stock is trading at $0.51 at the time of the writing. The surge could be the consequence of the company’s announcement of full forgiveness of PPP loans. On Monday, JOB closed the day at $0.47 after declining 1.56% during the regular trading session.
Reason for JOB Surge
In the late hours of Monday, JOB announced that it had received the full forgiveness of all of its approximately $19.9 million of Small Business Administration (SBA) Paycheck Protection Program (PPP) loans. The loans were applied for and received through the BBVA USA in fiscal 2020. The loans were granted according to the Coronavirus Aid, Relief, and Economic Security Act. The forgiveness has also included all of the accrued interest of the PPP loans.
Q3 2021 Operational Results
On 16th August, JOB reported the operational results for the third quarter of the fiscal year 2021. The quarter ended on 30th June 2021. The company generated net revenue of $38 million during the quarter against $34.7 million for the same period of 2020. The gross profit generated by the company during the three months stood at $13.8 million against $10.9 million for the same period of 2020. The net loss suffered by the company during the quarter was $0.93 million (or $0.01 per basic and diluted share) against $1.7 million (or $0.10 per basic and diluted share) for the same period of 2020.
Chairman and Chief Executive Officer of JOB, Derek Dewan, while commenting on the results said that the company is pleased with its performance during the quarter as all of the operating metrics were above the expectation of the company. With a strong balance sheet, positive earnings momentum, and enhanced cash flow, the company is looking forward to future acquisitions and will always remain true to its strategy built on discipline.
Future Outlook for JOB
A look at statistics reveals that the JOB stock has mostly followed a stable pathway, neither going to the depths of abysmal performance nor skyrocketing. As far as coming times are concerned, analysts hope that the stock would be able to attract long-term investments from the investors.