Earnings Release Date: 11/01/2013
Avg. Extended-Hours Dollar Volume: $28,568,276
Earnings Sensitivity (up or down): 1.6%
Buckeye Partners, L.P. (
) is due to issue its quarterly earnings report before market open
today. Given its history, traders can expect very active trading in
the upcoming Premarket session immediately following the company's
release of its quarterly earnings. An analysis of historical
premarket and after-hours trading activity and liquidity conditions
in BPL following an earnings release indicates that the price
change in the extended hours is likely to be of limited value in
forecasting additional price movement in the following regular
Analysts at MT Newswires have tracked how BPL's stock price has
reacted to quarterly earnings events the past both in the
after-hours and following regular session. The result of that study
Over the last year, when shares of BPL rose in the
extended-hours session in reaction to its earnings announcement,
history shows that 25% of the time (1 out of the last 4 quarters)
the stock posted additional gains in the following regular session
by an average of 5.20%.
Over the last year, when shares of BPL dropped in the
extended-hours in reaction to its earnings announcement, there is
limited evidence to suggest a follow-through in the same direction
the next day.
Our analysis of over a decade of company specific earnings
related news and price data on over 5,000 US companies demonstrates
that earnings event related trading opportunities can exist for
those trading in the after-hours and premarket sessions. Certain
stocks demonstrate a historical tendency to either underprice or
overreact to earnings news in the extended-hours (the time when
companies typically release earnings) relative to the following
regular session close.
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