Shares of Krispy Kreme Doughnuts (KREM) are trading near $81.25 in pre-market trading, well above yesterday's close of $76.75 after the company reported better than expected earnings this morning. A First Call survey of 6 analysts had KREM earning 24 cents a share, but the company beat those estimates by 3 cents a share. Following KREM's earnings announcement, the company increased fiscal 2001 per share guidance to $1.05, compared to the current consensus estimate of $1.01.
Krispy Kreme Doughnuts Chart - 60-minute interval.
Yesterday, we had alerted traders to a potential breakdown in shares of KREM ahead of today's earnings and the stock looked to be closing favorable for bearish traders. We've added a horizontal level of resistance that traders may use to manage the trade and we'd look for the $82.50 level (50-period MA) to serve as resistance. Traders that shorted the stock yesterday near $79 should keep a close eye on the stock here and we'd be stopping out on a break above $82.63. MACD remains below the zero level.