Analysis of the Most Interesting Earnings Reports: ADBE, FIVE, THO

Within this analysis we focus on the 3 most interesting stocks that have released the earnings reports in the past week:

  • Adobe Systems Inc (ADBE)
  • Five Below Inc (FIVE)
  • Thor Industries (THO)

The analysis will take into consideration the financial data reported in the earnings report just released (+ data of the last 5 years) and the stock price performance compared to key levels. For each of the companies there is a chart (+ description) containing the following key levels that could be reached (or exceeded) in the coming weeks:

  • Resistance and Support (black half-lines)
  • Simple moving average 20-day (blue line), 50-day (red line) and 200-day (black line)

The explanation of financial data section can be found at the end of the article.

The information in this article is for informational purposes only and does not constitute investment advice.


Summary

Before going deeper into the individual companies, let’s see together some key data relating to the earnings report released. In particular, the following information is shown in the table:

  • EPS surprise:
    • indicates how much the EPS (Earnings-Per-Share) reported were higher / lower than analysts’ expectations
  • Stock price reaction:
    • indicates the reaction of the stock price on the day of publication of the earnings report
  • Key Data Growth:
    • indicates how much the 3 main items (revenue, net income and net margin) have increased / decreased compared to the same quarter of 12 months before
  • Trend Direction?:
    • Indicates a positive (negative) short, medium and long term trend if the stock price is above (or below) the 20, 50 and 200-day moving average.

Adobe Systems Inc (ADBE)

Adobe Systems Incorporated is one of the largest software companies in the world. They offer a line of products and services used by creative professionals, marketers, knowledge workers, application developers, enterprises and consumers for creating, managing, delivering, measuring, optimizing and engaging with compelling content and experiences across personal computers, devices and media.

FINANCIALS:

During the last quarter, ADBE reported $3.128 million in revenue, up 14,0% compared to $2.744 million reported in the same quarter 12 months earlier. In the same period, net income increased by 73,9% to $1.100 million, compared to net income of $633 million in the previous period, while net margin was 35,2% , improved by 52,6% compared to the same quarter 12 months earlier.

Focusing on annual data, ADBE revenue in the last 4 quarters totaled $12.045 million, an increase of 105,7% compared to $5.854 million in revenue reported 3 years ago. During the same period, ADBE reported a 216,5% increase in net income to $3.700 million, compared to $1.169 million net income in the previous period, while the net margin improved by 53,8% .

KEY CHART LEVELS:

The current price of ADBE is $406,54 . The first key level to be overcome on the upside that could lead to a positive trend is the resistance at $412,45 , 1,45% away from the current price. The second key level that if exceeded to the downside could lead at the beginning of a negative trend is the support at $386,40 , -5,21% away from the current price.

Compared to the other 3 key levels to be monitored, ADBE is above the 20-day moving average , which indicates the presence of a positive short-term trend, above the 50-day moving average which indicates the presence of a positive mid-term trend and above the 200-day moving average which indicates the presence of a positive long-term trend.


Five Below Inc (FIVE)

Five Below, Inc. is a specialty value retailer offering merchandise for teen and pre-teen customers in the United States. The Company offers products all priced at $5 and below, including select brands and licensed merchandise across a range of categories, which it refers to as worlds: Style, Room, Sports, Media, Crafts, Party, Candy and Seasonal.

FINANCIALS:

During the last quarter, FIVE reported $201 million in revenue, down -44,9% compared to $365 million reported in the same quarter 12 months earlier. In the same period, net income decreased by -296,9% to -$51 million, compared to net income of $26 million in the previous period, while net margin was -25,2% worsened by -457,5% compared to the same quarter 12 months earlier.

Focusing on annual data, FIVE revenue in the last 4 quarters totaled $1.683 million, an increase of 68,2% compared to $1.000 million in revenue reported 3 years ago. During the same period, FIVE reported a 37,6% increase in net income to $99 million, compared to $72 million net income in the previous period, while the net margin worsened by -18,2% .

KEY CHART LEVELS:

The current price of FIVE is $110,45 . The first key level to be overcome on the upside that could lead to a positive trend is the resistance at $119,22 , 7,94% away from the current price. The second key level that if exceeded to the downside could lead at the beginning of a negative trend is the support at $100,48 , -9,92% away from the current price.

Compared to the other 3 key levels to be monitored, FIVE is above the 20-day moving average , which indicates the presence of a positive short-term trend, above the 50-day moving average which indicates the presence of a positive mid-term trend and above the 200-day moving average which indicates the presence of a positive long-term trend.


Thor Industries (THO)

Thor Industries manufactures a wide range of recreational vehicles (RVs) at various manufacturing facilities located in Indiana and Ohio and sold through independent dealers in the U.S. and Canada.

FINANCIALS:

During the last quarter, THO reported $1.682 million in revenue, down -32,9% compared to $2.507 million reported in the same quarter 12 months earlier. In the same period, net income decreased by -26,3% to $24 million, compared to net income of $33 million in the previous period, while net margin was 1,4% , improved by 9,9% compared to the same quarter 12 months earlier.

Focusing on annual data, THO revenue in the last 4 quarters totaled $8.155 million, an increase of 78,0% compared to $4.582 million in revenue reported 3 years ago. During the same period, THO reported a -23,6% decrease in net income to $196 million, compared to $257 million net income in the previous period, while the net margin worsened by -57,1% .

KEY CHART LEVELS:

The current price of THO is $106,85 . The first key level to be overcome on the upside that could lead to a positive trend is the resistance at $114,84 , 7,48% away from the current price. The second key level that if exceeded to the downside could lead at the beginning of a negative trend is the support at $89,45 , -19,45% away from the current price.

Compared to the other 3 key levels to be monitored, THO is above the 20-day moving average , which indicates the presence of a positive short-term trend, above the 50-day moving average which indicates the presence of a positive mid-term trend and above the 200-day moving average which indicates the presence of a positive long-term trend.


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FINANCIAL DATA

– Explanation –

This section shows some key financial data contained in the company’s income statement, updated to the latest available earnings report. The 2 tables are as follows:

FIRST TABLE – “Key Data in the past 5 years”

“Key Data in the past 5 years” table shows the amount of Revenue, Net Income and Net Margin (the percentage of Revenue that turns into Net Income) reported in the last year or in the last 4 quarters (TTM-trailing 12-months). In the same table you can find the percentage increase (or decrease) of the 3 items in the last 3 years.

To the right of the table you find a chart containing the trend of Revenue in the last 5 years (green columns) and the trend of Net Income (red line) in the same period. Inside the same chart you will find a semi-transparent line that show the trend line of the Revenue in the last years.

This section is useful for understanding if the company has been growing in recent years.

SECOND TABLE – “Key Data in the last Earnings Report”

“Key Data in the last Earnings Report” table shows the data of the same items of the previous table, but with reference to the last earnings report released by the company in comparison with the same quarter of 12 months before.

On the right of the table you will find the relative chart containing the trend of Revenue (green columns) and Net Income (red columns) in the 2 quarters taken into consideration (current versus last year’s quarter).

This section is useful for understanding if the company has grown in the last quarter compared to the same quarter of last year.

Data are expressed in millions of dollars.


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Sources & additional info

*Chart by stockcharts.com
*EPS surprise and company description by barchart.com


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