Illumina (ILMN) has been a red hot stock of late, riding momentum to new all time highs this week. But we should learn a lot more about the recent price action when Illumina reports earnings after the market close today.
According to estimize, analysts are expecting Illumina earnings of 0.78 EPS on $542 Million in revenue.
Illumina does a fantastic job consistently beating earnings and revenue expectations quarter after quarter. Here’s a quick look at earnings expectations relative to results for the last two years. The question is, has the market priced in a homerun?
The continuously impressive earnings beats, in part, explain why the stock has risen over 800% in less than four years. As you can see, shares have recently left a tight base on it’s way to fresh all time highs.
Looking at the one year daily chart we see numerous potential levels to note if a pullback were to materialize post Illumina earnings.
Price areas of interest include: 223, 213, 200, 180. Based on the July at the money straddle pricing, the market expects a move of roughly $16.50 out of earnings. That would line up nicely with the pivot level at the top of the prior base and rising 20 day moving average.
Illumina (ILMN) is in a strong trend higher and ILMN leading stock in an explosive growth business. Any significant earnings pullback (barring disaster) would likely be a gift.
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The author does not have a position in the mentioned securities at the time of publication. Â Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
