Obalon Therapeutics, Inc. (OBLN)’s Historical Post-Earnings Performance

20 days have passed by since the last earnings report for Obalon Therapeutics, Inc. (NASDAQ:OBLN) and the new quarterly results look set to arrive in 80 days. The shares of OBLN at the moment are trading at a volume of 0.32 million, which compares with its normal daily standard volume of 748017 shares. This has led to the shares of the company declining by -6%, currently exchanging hands at $2.82 a share. OBLN stock has been up by $34.18 (-92.38%) ever since it reached its 52-week high of $37 back in September 12, 2018. It has progressed below its 50-day moving average of $5.8974 and is down -13.23% over the past week. The stock has retreated -67.5% since the last one arrived so the question here is that will the downbeat trend in that time frame continue leading up to its next earnings release, or is the OBLN share price due for a breakout?

Obalon Therapeutics, Inc. (OBLN) Forecasts And Latest Quarter Earnings

Ahead of their fiscal third-quarter to be released on Friday, Nov 01, 2019, 3 analysts who are covering the company are estimating that it will record a profit of -$2.5 per share, with analysts having different outlooks from -$3.5 to -$1.7. The current agreed outlook, when compared to the profit recorded last year, is at -$3.5 a share, thus a decrease of -28.57% is expected. The profit view for a complete financial year for Obalon Therapeutics, Inc. is expected to be around -$11.03 in current year, a growth of nearly -43.72% from last year which was -$19.6.

Analyzing The Earnings History Of Obalon Therapeutics, Inc. (NASDAQ:OBLN)

In the past few years, the OBLN stock has been known to miss the Wall Street’s earnings projection. The company missed 66% of the time, according to the data pulled on their earnings, was able to meet predictions on 1 occasions and topped expectations 3 times. Looking at the past trend, the price of Obalon Therapeutics, Inc. shares had sank following the release of their earnings in 8 of the last 11 quarters.

Looking back, here is how Obalon Therapeutics, Inc. (OBLN) stock reacted to earnings misses and beats. It gave investors reason to be bearish with the price going down after 4 of the last four earnings reports. The shares of Obalon Therapeutics, Inc. recorded -40.42%, -5.1%, -10.09% and -8.84%, respectively, on the first day of past earnings releases. After a week of earnings reports, the changes were -40.83%, -14.08%, -17.43% and -5.12%. Their post-earnings price movements have resulted in an average decrease of -16.11% and an average decrease of -19.37% in Obalon Therapeutics, Inc. on next day and 7th day, sequentially. OBLN’s one month stock performance led to its shares declining by -55.59% with a return of -84.33% witnessed over the last 52 weeks.

The higher number of analysts at Reuters has assigned a buy or better ratings (3) on the Obalon Therapeutics, Inc. stock, while 2 of them have a rating of a Hold with the 11-year target price suggested by the analysts standing at $17.9. This price target implies potential upside of 534.75 percent over the next 12 months based on the current share price.

Obalon Therapeutics, Inc. (OBLN) Post Earnings Announcement Drift (PEAD)

Back on July 24, 2019, Obalon Therapeutics, Inc. (NASDAQ:OBLN) released its Q2 results, in which it recorded a loss of -$2.5 that fell short of consensus estimates of -$2.43. After the earnings were reported, the price of OBLN stock kicked off the session at $5.5 and remained in a range of $6.6 to $6.89 on the first day. The shares were priced at $5.72 at the close with a total volume of shares being 900402.

On May 10, 2019, the Q1 earnings report was disclosed with loss per share of -$3.6. This was above the estimation of -$3.7 per share. The stock price range of OBLN was between $4.8 and $5.23 on the first-day post announcement, after opening the day at $4.51. The session came to close at $4.65 and there was a total volume of 4153820 shares.

February 22, 2019 was the day when its Q4 results were unveiled. The loss came in at -$3.9, missing the projected -$3.6 per share. The very next day, OBLN stock opened at $19.6 while staying in a range of $22.1 to $23.28. At the end, it moved to $19.6 a total volume of shares been 1188970.

In the year-ago Q3 earnings on November 02, 2018, the company saw a loss per share of -$3.5. That was better than the -$4.77 analysts had expected. Obalon Therapeutics, Inc. share price started at $1.95 on the first full trading day post-earning and then exchanged hands between $2.19 and $2.36 throughout the session. The closing price of $1.96 came on the back of 164709 shares in volume.