The Appen Ltd (ASX: APX) share price has been storming higher on Wednesday. Shares in the Aussie tech company are up more than 8% following yesterday’s surge.
With the Aussie data company set to release earnings tomorrow, let’s take a look at how the company’s share price reacted last time it reported.
Why the Appen share price slumped 7% last time it reported
Appen reported its full-year earnings back on 24 February 2021. Shares in the Aussie data company sank 7% following the update despite reporting a 12% jump in revenue to $599.9 million.
The “WAAAX” company reported underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 8% to $108.6 million while underlying net profit edged 1% lower to $64.6 million.
Appen even announced a 50% franked dividend of 5.5 cents per share as part of the full-year update. However, investors were not impressed with the Appen share price sinking 7% lower throughout the day.
It was a similar story back following Appen’s half-year 2020 earnings as well. Shares in the Aussie data company fell 11.1% lower on 27 August 2020 despite a 25% increase in revenue to $306.2 million.
Appen reported underlying EBITDA up 6% to $49.1 million with a 3% decline in underlying net profit after tax to $28.9 million. The company announced a 4.5 cents per share and 50% franked interim dividend up 12.5% from the previous year.
Once again, however, the Appen share price sank lower. Investors will be hoping that tomorrow’s half-year results update is the one that reverses the recent trend for the Aussie data company.
If the recent market moves are anything to go by, investors have high hopes for Thursday’s update. The Appen share price has surged more than 8% higher on Wednesday and is now up more than 18% in the last 5 days.