
Earnings are going to be on Thursday, February 2, before the open. I’m comfortable holding through them since I have a good gain and am protecting 1.5R of it. Because earnings are around the corner, I wanted to review the current earnings history to get an idea of what to look for Thursday.
The past 5 Q’s have shown great QoQ growth, however the last 3 have shown declining acceleration. This past Q even showed slightly negative growth. Meanwhile, YoY growth has been growing and accelerating strong. I’ll be looking for some reacceleration in QoQ growth. If not, I wouldn’t be surprised if there is a knee jerk down, even if they beat estimates. The key will be if it can bounce back after a knee jerk down. On the other hand, if they do show reacceleration of growth, I think I should get my 3R goal.