Earnings Preview: What To Expect From DocuSign On Thursday

DocuSign Inc DOCU . is scheduled to report earnings after Thursday’s close. The stock just hit a record high of $314.76 and is currently trading near $292/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:

Earnings Preview:

DocuSign is expected to report earnings of $0.39/share on $487.50 million in revenue. Meanwhile, the so-called Whisper number is $0.42. The Whisper number is the Street’s unofficial view on earnings.

A Closer Look At The Fundamentals:

Fundamentally, the company has enjoyed explosive triple-digit growth in each of the last four quarters! The company benefited from the Covid-19 lockdown and stay-at-home world we found ourselves in for most of last year. Now, the question is can the company continue to grow or will it finally slow down?

A Closer Look At The Chart:

Technically, the stock is acting great as it is just pulling back into its 50 day moving average line after breaking out of a long multi- month base. If the stock gaps up after earnings that will pave the way for more gains. Conversely, if the stock gaps down, then it can easily fall further. A few other stay at home stocks fell recently after reporting earnings (Peloton Interactive PTON , Zoom Video Communications, and Chewy Inc CHWY are a few that come to mind) so it will be interesting to see what happens with DocuSign.

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.