DocuSign Inc. is scheduled to report earnings after Thursday’s close. The stock hit a record high of $290.23 in 2020 and is currently trading near $215/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
DocuSign is expected to report earnings of $0.14/share on $360.38 million in revenue. Meanwhile, the so-called Whisper number is $0.19. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals:
Fundamentally, the company has reported explosive growth in the last four quarters and has benefited handsomely from the Covid-19 related stay and work from home world we live in. In Q3 2019, the company reported earnings of $0.11 which was lower than the $0.14 analysts expect for Q3 2020.
A Closer Look At The Chart:
Technically, the stock has surged in 2020 and is currently building a new 5-month base to digest the big run – which tends to be a bullish sign. A move above $246 will be very bullish and pave the way for another leg higher.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news.