Akamai Offers Bullish Play For Both Longs And Shorts Off Evening Earnings Report
April 25, 2012 by: Midnight Trader | about: AKAM
Akamai Technologies (AKAM) is due with its Q1 results after the bell tonight, and analysts polled by Thomson Reuters are expecting the company to report a profit of $0.38 per share on revenue of $311 million.
AKAM has recorded more aggressive next-day closing levels following 25 of its last 33 after-hours earnings events, or 76% of the time.
Looking deeper into performance data, longs take note that AKAM has followed extended-hours earnings reports with gains in 18 quarters, extending that move the following day 13 times, or 72% of the time.
The track record for shorts is similar. This stock has reacted to evening reports with declines in 15 quarters, extending downside action the following day 12 times, or 80% of the time.
The performance history follows:
On Feb. 8, 2012, AKAM jumped 13% in after-hours trade on better-than-expected Q4 results. The stock narrowed its upside the next day, closing the Feb. 9 regular session up 10.5%.
On Oct. 26, 2011, AKAM advanced 12.1% in evening trade after beating Q3 expectations. The stock added to its upside the next day, rising 15.4% in the Oct. 27 regular session.
On July 27, 2011, AKAM dropped 13.8% in after-hours trade after missing Q2 expectations. The stock headed deeper in the red the next day, closing the July 28 regular session down 19.1%.
On April 27, 2011, AKAM tumbled 9.8% in after-hours action after topping Q1 expectations and issuing a disappointing outlook. The stock added to its downside the following day, closing the April 28 regular session down 14.7%.
On Feb. 9, 2011, AKAM plummeted 11% in after-hours trade after beating Q4 expectations but also guiding for Q1 results below the Street view. The stock continued its downside run the next day, closing the Feb. 10 regular session off 15%.
On Oct. 27, 2010, the stock rose 3% after a narrow earnings beat. Shares rose a slimmer 1.4% the next day.
On July 28, 2010, AKAM declined 5.7% in after-hours trade after reporting better-than-expected Q2 revenue and meeting EPS estimates. The stock dropped lower the following day, closing the July 29 regular session down 12.9%.
On April 28, 2010, AKAM jumped 8.5% in after-hours trade after topping Q1 expectations. The stock surged higher the following day, closing up 19.4%.
On Feb. 3, 2010, AKAM declined 4.9% in after-hours trade despite topping Q4 expectations. It cut its downside the following day, ending the Feb. 4 regular session down 3.7%.
On Oct. 28, 2009, AKAM advanced 9.6% in after-hours trade after reporting better-than-expected results and guidance. The stock soared higher the following day, ending the Oct. 29 regular session up 13%.
On July 29, 2009, the stock fell 10.6% after reporting a Q2 miss. Shares plunged 19% the following day.
On April 29, 2009, AKAM advanced 5.6% in after-hours trade after topping Street expectations. The stock churned higher the following day, closing the April 30 regular session up 9.7%.
On Feb. 4, 2009, the stock rose 7.4% in extended hours after a Q4 beat. The share gain more than doubled the next day, to 18%.
On Oct. 30, 2008, the stock jumped 12.6% after a Q3 earnings beat. The gain was cut to 4.2% the next day.
On July 30, 2008, the stock fell 16% during evening trading after meeting with Q2 EPS but missing with sales. The loss fattened to 25% the next day in reaction to weak guidance.
On April 30, 2008, AKAM slipped 0.06% in the evening hours after the company missed with revenue though beat with EPS by two cents. The loss was a deeper 3.9% the next day.
On Feb. 6, 2008, shares advanced 1.9% during evening trading after AKAM beat Q4 expectations. The gain improved to 9% the next day.
On Oct. 24, 2007, AKAM advanced 1.3% in after-hours trade after beating Q3 Street estimates. The stock added to its evening upside the following day, rising a hefty 12.6% by the Oct. 25 regular session close.
On July 25, 2007, AKAM plunged 12% in night trade despite beating Q2 sales estimates and meeting on EPS. The company guided Q3 earnings to be in line to below Street views. Shares fell further the following day to end the regular session down 18.9%.
On April 25, 2007, AKAM lost a slim 0.1% in after-hours trade after the company reported results in line with expectations. Sellers grew more aggressive in the April 26 regular session, sending the stock down 4.9% by the close.
On February 7, 2007, AKAM slipped 1.9% in night trade despite topping Q4 estimates. However, shares recovered the next day, closing the regular session up 0.5%.
On the evening of Oct. 26, the stock fell 1.4% as results above the Street's view didn't satisfy investors. The loss expanded to 6.7% the next day.
On July 26, 2006, AKAM jumped 15.8% in after hours when the company beat Q2 expectations. Shares surged 22.7% during the next day session.
On April 26, 2006, shares were just in the positive as night trading wrapped, up 0.03% following the company's stronger-than-expected Q1 results and firmer guidance. The gain improved to 2.4% the next day.
On February 8, 2006, AKAM jumped 7.9% in evening trade after beating Q4 estimates. The shares rose further the following day, closing the regular session up 18.2%.
On Oct. 25, 2005, AKAM slimmed down 0.1% in after-hours trade after the company reported results and guidance in line with expectations. The stock edged slightly lower on Oct. 26, losing 0.4%.
On July 26, 2005, AKAM ended the night session up 0.4% after the company beat Q2 expectations. The stock widened its gains the next day, closing the regular session up 3.5%.
AKAM erased brief gains on the night of April 27, 2005, ending flat after Q1 results matched Street forecasts. It fell 1.7% in the April 28 regular session.
AKAM jumped 9.6% the night of Feb. 17, 2005 after the company beat sales expectations and posted in-line earnings. The stock recorded more bullish buying the next day, closing bell-to-bell trade up 13.4%.
AKAM declined 6.2% the night of October 27, 2004 after the company met Street expectations. The stock dropped more aggressively in the October 28 regular session, losing 11.2%.
On July 27, 2004 AKAM lost 3.9% despite beating estimates. The issue cut its downside in next-day trade, ending the regular session down 3.4%.
On April 28, 2004 AKAM edged up 0.08% after the company met EPS expectations and beat on revenue. The stock lost its upside footing on April 29, losing a slim 0.77%.
Finally, AKAM gained 5.5% the night of February 4, 2004 after beating on revenue. AKAM recorded big buy action the next day, rising a whopping 26.6%.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
