Everquote Earnings News: Will higher revenue EVER be enough to reverse correction?


  • EVER beat Q1 earnings revenue expectations by 2.6%, up 28% YoY. 
  • Shares are down more than 45% from the 52-week high.
  • Earnings arrived just two weeks after Everquote shares saw the death cross on the daily chart.

Online insurance marketplace Everquote (Nasdaq:EVER) beat revenue expectations for the quarter ending in March, but it waits to be seen whether the market will continue ignoring such good news.

Since EVER’s high in July 2020 at $63.44, the stock has fallen more than 45%.

Reporting after the market closed on Monday, May 3, Everquote announced revenue of $103.8 million, 2.6% above consensus, and an adjusted earnings loss of $0.13. At 28% above last year’s revenue for the quarter, the results show Everquote is not losing momentum on the fundamental front.

Since 2017, EVER has reported consecutive annual revenue growth of 29%, 52% and 39%. During the March quarter, non-auto insurance jumped a whopping 41% YoY.

Based on the trailing 12 months, EVER is now selling for just 2.7 times revenue, what would appear a steal for a digital platform with solid sales growth.

Analysts seem to think so as well. With semi-recent “outperform” ratings from Oppenheimer and Raymond James, consensus places the price target at $61.58, a 79% premium above Monday’s close.

Everquote technical chart: Death cross darkens the outlook

Traders can be forgiven for not jumping all over this puppy. After all, April 20 saw the dreaded knell of the death cross pattern, wherein the 50-day SMA dropped below the 200-day Simple Moving Average (SMA). In fact, this was the second time after it transpired earlier in September 2020.

At the moment, however, EVER shares are consolidating in the same demand zone – stretching from $31.50 to $36.25 – that buoyed them once before. If they break through the lower bound, the next support region is around $30 from January 2020.

Below that, shares could fall the whole way to the March 2020 low near $23.

EVER 1-day chart

On the upside, the 100 and 200-day SMAs are colliding at $40, meaning this could act as stiff resistance for bulls.

Before that, the local high from early April sits at $38.54.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!
   

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD failed to recover above 1.2100

The shared currency remains under selling pressure against its American rival, trading in the 1.2080 area. Market players waiting for more hints in the form of April Retail Sales.

EUR/USD News

GBP/USD under pressure below 1.4050 amid renewed USD demand

GBP/USD trades pressured below 1.4050, as the US dollar remains broadly bid amid risk-off sentiment. Rising inflationary pressures and Brexit jitters over NI keep investors on the edge. Bailey's speech, US data in focus.

GBP/USD News

XAU/USD respects the 10-day EMA

Gold could be on the verge of a lower low, but the hourly time frame is key. The hourly support structure is guarding a break to test bullish commitments at 1,800. The 10-day EMA and confluence of the 50% mean reversion are also offering support. Gold Weekly Forecast: XAU/USD could target 200-day SMA

Gold News

Yearn Finance Price Forecast: YFI eyes consolidation after quick surge

Yearn Finance price tagged the channel’s upper trend line yesterday, falling just short of $100,000 and 261.8% Fibonacci extension target at $102,900. The sharp reversal from the trend line marks a significant turning point for YFI that will shift price action to consolidation from the uptrend beginning at the April 25 low. 

Read more

US markets lead the recovery as jobless claims decline

Ongoing inflation fears remain, yet improved jobless claims help lift spirits in the US. Meanwhile, UK reopening stocks have been dealt a blow after SAGE claimed that a rise in the Indian Covid strain could slow the pace of lockdown easing. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures