What happened
Shares of Doximity (DOCS +2.46%) rose 13.5% this week as of Thursday's close, according to data provided by S&P Global Market Intelligence. The stock closed last Friday at $34.95 and rose to as high as $40.12 on Thursday afternoon, the highest the stock has been since last Aug. 2. The company, which provides a digital platform for healthcare professionals, has a 52-week low of $22.91 and a 52-week high of $64.95.
So what
The healthcare company is due to report earnings on Feb. 9. In advance of that, the company didn't report any news. However, it was an up day in general for the market, and Doximity's shares have been climbing since the company announced fiscal second-quarter earnings on Nov. 10.
NYSE: DOCS
Key Data Points
This could be a case of investors wanting to get in on the stock before what they think could be another positive earnings report. In the second quarter, Doximity reported net income of $102.2 million, up 29% year over year, though net income of $26.3 million represented a drop of 27% over the same quarter in 2022. The bulk of the company's revenue comes from selling advertising from pharmaceutical companies to doctors.
Now what
The stock could easily swing either way next week, depending on how earnings go. Back in its second-quarter report, Doximity said it expected revenue to be between $110.7 million and $111.7 million, compared to revenue of $97.8 million in the third quarter of fiscal 2022. A positive earnings surprise would send the stock higher, but if it falls short of projections, its ride will likely be halted. It has also forecast $428 million in revenue in fiscal 2023. Over the past three years, it has more than doubled net income each year.
