Pluralsight, Inc.: Should You Chase PS Stock Into Earnings?

9 days have passed by since the last earnings report for Pluralsight, Inc. (NASDAQ:PS) and the new quarterly results look set to arrive in 96 days. The shares of PS at the moment are trading at a volume of 0.77 million, which compares with its normal daily standard volume of 1.92 million shares. This has led to the shares of the company declining by -0.28%, currently exchanging hands at $17.64 a share. PS stock has been up by $18.06 (-50.59%) ever since it reached its 52-week high of $35.7 back in May 02, 2019. It has progressed above its 50-day moving average of $17.13 and is down -2.43% over the past week. The stock has retreated 0% 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 PS share price due for a breakout?

Pluralsight, Inc. (PS) Forecasts And Latest Quarter Earnings

Ahead of their fiscal fourth-quarter to be released on Wednesday, Feb 12, 2020, 12 analysts who are covering the company are estimating that it will record a profit of -$0.14 per share, with analysts having different outlooks from -$0.15 to -$0.13. The current agreed outlook, when compared to the profit recorded last year, is at -$0.09 a share, thus an increase of 55.56% is expected. The profit view for a complete financial year for Pluralsight, Inc. is expected to be around -$0.37 in current year, a growth of nearly -38.33% from last year which was -$0.6.

Let’s now look at their sales section, PS’s revenue is estimated to be $67.26M, a figure which is more than the $67.26M recorded for Q4 last year. Their sequential sales though are expected to move versus Q3’s $75.86B. Their full-year outlook is pegged at $315.25M, implying that there would be an increase of 35.87% over the $232.03M they recorded last year in revenue. Pluralsight, Inc. is projected to get sales lifted by 25.34% in the next quarter, with a revenue target of $395.15M.

Analyzing The Earnings History Of Pluralsight, Inc. (NASDAQ:PS)

In the past few years, the PS stock has been known to miss the Wall Street’s earnings projection. The company missed 100% of the time, according to the data pulled on their earnings, was able to meet predictions on 0 occasions and topped expectations 0 times. Looking at the past trend, the price of Pluralsight, Inc. shares had sank following the release of their earnings in 4 of the last 5 quarters.

The higher number of analysts has assigned a buy or better ratings (11) on the Pluralsight, Inc. stock, while 1 of them have a rating of a Hold with the 11-year target price suggested by the analysts standing at $27.08. This price target implies potential upside of 53.51 percent over the next 12 months based on the current share price.

Pluralsight, Inc. (PS) Post Earnings Announcement Drift (PEAD)

Back on October 30, 2019, Pluralsight, Inc. (NASDAQ:PS) released its Q3 results, in which it recorded a loss of -$0.08 that exceeded consensus estimates of -$0.14. After the earnings were reported, the price of PS stock kicked off the session at $16.4 and remained in a range of $19.01 to $19.03 on the first day. The shares were priced at $18.08 at the close with a total volume of shares being 3552082.

On July 31, 2019, the Q2 earnings report was disclosed with loss per share of -$0.06. This was above the estimation of -$0.14 per share. The stock price range of PS was between $20.55 and $20.95 on the first-day post announcement, after opening the day at $18.16. The session came to close at $18.56 and there was a total volume of 22134974 shares.