Earnings Release Date: 10/29/2013
Avg. Extended-Hours Dollar Volume: $41,903,598
Earnings Sensitivity (up or down): 2.2%
JetBlue Airways Corporation (
) 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 JBLU 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 JBLU'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 JBLU rose 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.
Over that same historical period, when shares of JBLU dropped in
the extended-hours in reaction to its earnings announcement,
history shows that 25% of the time over the last 4 quarters the
stock dropped further, adding to the extended-hours losses by an
average of 0.80% by the following regular session close.
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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