ATLASSIAN CORP (TEAM)

EARNINGS RELEASE THURSDAY - OCTOBER 17 (AMC)

Trade Assist May Not Be Available For All Jump Trades (See Trade Plan

Ticker delayed 20 minutes

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JUMP REPORT

Avg Daily Volume: 1,496,390    Market Cap: 30.85B
Sector: None    Short Interest: 10.82

EARNINGS EXPECTATIONS:  

     THIS QTR:   EPS:     .24/share     REV:  351.50/M
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     LAST QTR:  EPS:      .16/share     ACTUAL:   .20/share  (BEAT)
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     NEXT QTR:  EPS:     .26/share     REV: 381.50/M
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     FULL YR:     EPS:     1.01/share    REV: 1,550/M
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*These are the base metrics we will be watching against the actual release numbers
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BEAT/MISS RECORD:  73%  OF THE TIME THEY BEAT ESTIMATES

PRIOR ‘JUMP ZONE’ MOVES (LAST 3 QTRS %) 11.36, -9.83, 7.61

EXPECTED JUMP MOVE:  10-12%

Links To Latest News and Headlines

Atlassian stock popped after the  software maker accelerated plans to phase out server licenses, a move aimed at migrating customers to cloud-based offerings. Earnings are due Oct. 29.

Atlassian saw an improvement in its IBD SmartSelect Composite Rating Monday, from 94 to 96. The revised score means the stock currently tops 96% of all other stocks in terms of key performance metrics and technical strength. Atlassian has now climbed above a proper buy zone after breaking out from a 198.51 buy point in a consolidation and hits new high.

19 Oct, 2020 @ 14:43 by Yahoo! Finance

Atlassian (TEAM) saw a big move last session, as its shares jumped nearly 9% on the day, amid huge volumes.

Shares in Atlassian (TEAM) popped 9% in Friday’s trading after the company announced significant changes to its cloud, server, and data center products.Notably, TEAM will end new server license sales (from February 2021) and will also end support to all server products (starting February 2, 2024).It will also increase server maintenance prices and increase prices for Data Center (effective February 2, 2021, mostly for new subscriptions vs. changes to existing subscriptions). Also on the pricing front, TEAM will update its cloud pricing (as of October 6, 2020; impact varies by product, user level, existing vs. new license).To ensure a smoother and faster transition, Atlassian will also offer three-year support and maintenance and offer discounts to customers that upgrade to cloud or Data Center products at lower prices. More details will be revealed in the company’s Q1’21 shareholder letter on October 29, 2020.In a blog post to customers, TEAM co-founder and co-CEO Scott Farquhar wrote: “When it comes to our mission of unleashing the potential of every team – including yours – you need us to move faster and go even further. In response, we are announcing changes to our server and Data Center offerings in order to sharpen our focus as a cloud-first company.”Following the announcement, Oppenheimer analyst Ittai Kidron reiterated his buy rating on the stock and $220 price target.“Ultimately, the moves signal Atlassian’s efforts to accelerate its customers’ transition to cloud products from on-premise. The company has taken into account this transition in its guidance, and this shouldn’t come as a surprise to investors, but rather as the official start for the “rollover” to the cloud process” he commented.As a result, the analyst believes that CY21 will be a transitional year, when the major portion of the impact of this transition will be felt before growth can accelerate again.Longer-term, Kidron expects the discounting effect to generate a tailwind for subscription revenue growth as migrating customers are slowly ramped to full cloud pricing over a few years. (See TEAM stock analysis on TipRanks)Shares in Atlassian have surged over 70% year-to-date, and the stock scores a bullish Strong Buy Street consensus. That’s with 10 recent buy ratings vs 2 hold ratings. Meanwhile the average analyst price target stands at $208- which is flat with the current share price.Related News: GTT In $2.15B Deal To Sell Infrastructure Unit To I Squared; Shares Up 7% First Citizens, CIT To Merge Into $100B US Regional Lender; Shares Spike Eli Lilly To Snap Up Disarm In $135M Deal; Street Stays Bullish More recent articles from Smarter Analyst: * United Airlines Adds 8 New Routes To Boost Latin America Presence * Nokia Picked By NASA For Moon’s First-Ever Cellular Network * CVS To Add 15,000 Workers To Meet Covid-19 Test Demand; Tigress Says Buy * VF Tops 2Q Estimates; Shares Decline

Atlassian shows improving price performance, earning an upgrade to its IBD Relative Strength Rating from 80 to 84.

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ANALYSIS:   

StockJumpers trajectory analysis reveals a positive market reaction to the news release. We see a beat on sales and earnings and the stock price going up post release. 

We are long on the event

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OUR TRADE PLAN:

ENTRY:  BUY – end of day
STOP LOSS:   NA
INITIAL PROFIT TARGET:  8%
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TRADE ASSIST:  YES

POST RELEASE ACTION: 

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