$ATI – UPDATE: +2.64R, Here Comes Earnings

This has been a nice trade. It keeps bumping up against my 3R goal but hasn’t quite got there yet. In the meantime, it’s been displaying some nice tennis ball action.

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.

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