MongoDB is scheduled to report earnings after Tuesday’s close. The stock hit a record high of $590/share in 2021 and is currently trading near $423/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
The company is expected to report a gain of $0.51/share on $403.65 million in revenue. Meanwhile, the so-called Whisper number is a gain of $0.55/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company’s earnings turned positive in 2023 and are expected to continue to grow rapidly in 2024 and 2025. The company lost money every year until 2022, then is expected to turn profitable and earn $0.81 in 2023. Earnings are expected to grow to 2.38 (+194% year-over-year) in 2024 and then to 2.85 (another 20% year-over-year) in 2025. That is very attractive for growth investors.
A Closer Look At The Technicals
Technically, the stock is acting very well. The stock is up nicely this year and just broke out of a bullish cup-with-handle pattern. The stock is currently consolidating its recent (and robust) rally near its summer high. A breakout above 439 will be very bullish and suggest higher prices will follow. Conversely, if the stock gaps down after earnings that will be bearish.
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. Remember, always keep your losses small and never argue with the tape.
Disclaimer: The stock is currently featured in my FindLeadingStocks.com stock market membership website.
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