Friday, July 31, 2009

AKAM earnings on 7/29 -4.0% in AH, another -10.0% next trading day

One of several good moves this week on earnings announcements was AKAM. After hours on 7/29 it dropped over 4%, next trading day down an additional 10%. This is our analysis from previous earnings events for AKAM, a consistent wider mover.

AKAM has recorded more aggressive next-day closing levels following 17 of its last 22after-hours earnings events. In fact, the stock has seen wider next-day moves in 14 of its last 16 earnings periods and in the last five out of six quarters.

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 earnigs 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.

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