Second-quarter earnings season is not quite over yet, as Asana Inc (NASDAQ:ASAN) announced earnings after the close on Wednesday. The price action following the work management software company's report makes it the PreMarket Prep Stock of the Day.
Asana's Rough August: Asana’s stealth rally off its July 19 low ($16.19), which matched three other lows in that area, came to an abrupt end Aug. 11 at $29.51. That came in just under its May high of $30.48.
After reversing the course, it only took the stock seven sessions to get back down to $20. It took another leg lower and did not find a bottom until Sept. 1 at $17.04 and rebounded to end the session at $17.82.
Bargain Hunters, Short Covering Ahead Of The Print: Following the rapid decline, buyers congregated at the $18 area over the next three sessions.
The issue had a good day on Tuesday, gaining 73 cents, and adding another 15 cents to end Wednesday's session at $19.04.
Related Link: 3 Asana Analysts On Earnings: Better Than Expected, But 'Continued Deceleration And More Macro Headwinds To Surface'
Asana's Q2 Report: After the close on Wednesday, the company reported quarterly losses of 34 cents per share, which beat the analyst consensus estimate of a 39-cent loss by 12.82%.
The company reported quarterly sales of $134.9 million, which beat the analyst consensus estimate of $127.24 million by 6.02%.
The company forecast third-quarter EPS and FY23 EPS and sales to be slightly higher than Wall Streat estimates.
PreMarket Prep's Take: When the issue was being covered on the show, it was trading higher by over $4 at the $23.50 area.
The premarket high at that time was $24.26. The author of the article noted the significance of the premarket high coinciding with its Aug. 19 high ($24.33).
Above that level, the issue had a void in price to fill up to $24.64, which marked the low on Aug. 18.
The following day, the issue swooned from $25.06 to $21.97, which instigated the move to the recent low.
ASAN Price Action: After a higher open Thursday ($22.55 vs. $19.04), the issue spiked lower in the first few minutes but found support well ahead of the top of Wednesday’s range ($21.42 vs. $19.16).
The ensuing rebound off that low surpassed the gap fill area ($24.80), but could not hold at that elevated level.
The software stock ultimately gained 24.53% Thursday, closing at $23.76.
Watch Thursday's PreMarket Prep show here:
Photo courtesy of Asana.
