Due to higher revenues, Bilibili (BILI) is expected to disclose a year-over-year improvement in earnings for the quarter concluding in March 2024. Although the consensus outlook offers a broad understanding of the company's earnings performance, the actual results will substantially impact the immediate stock price in contrast to these projections.
What Should Investors Focus On BILI Stock?
If key figures in the earnings report, expected to be released on May 23, 2024, surpass expectations, the stock may increase. Conversely, if the results are adequate, the stock may continue.
The management's commentary on business conditions during the earnings call will primarily determine the sustainability of any immediate price changes and future earnings forecasts. Nonetheless, it is advantageous to comprehend the probability of a positive EPS surprise.
Bilibili, a video-sharing platform based in China, is expected to incur a quarterly loss of $0.17 per share, representing an annual growth rate of 54.1%. Revenue is anticipated to be 7.750.06 million, representing a 4.6% increase compared to last year's quarter.
BILI Earnings Expectation Is Solid
Over the last 30 days, earnings per share (EPS) have been reevaluated by consensus, resulting in a decrease of 5.88% in the estimate.
Adjustments made by individual analysts to their estimates might not consistently manifest in the overall change. Analysts frequently consider how well a company has met consensus estimates when predicting future earnings. Therefore, the company's track record of unexpected results is significant.
Bilibili reported a loss of $0.19 per share in the preceding quarter, contrary to the anticipated loss of $0.16 per share, which would have generated a -18.75% surprise. The company's earnings per share have surpassed consensus estimates twice in the past four quarters.
BILI Stock Forecast Technical Analysis
In the daily chart of BILI stock price, the recent price showed a counter-bullish impulsive momentum, taking the price to a new yearly high. Moreover, the 50-day EMA remained below the current price, creating a long opportunity from the near-term support line.
When the 50-day EMA crossover is above the 200-day SMA, we may consider it a golden cross, which is a strong bullish opportunity. As the current Bilibili stock price trades above both MA lines, we may consider the upward pressure solid for this instrument.
In the volume structure, the most active level since January is also below the current price, suggesting ongoing bullish pressure. In that case, a minor downside correction towards the 14.00 to 10.00 zone could be a long signal after forming a valid bullish reversal. On the upside, the 20.00 level would be the first barrier to bulls, where the major resistance is at the 25.58 level.
On the other hand, a steep selling pressure with a bearish re-distribution phase below the 10.00 level could be a bearish opportunity, targeting the 5.00 level.
