Thursday, May 26, 2011

Blue Coat Systems Offers Strong Play for Longs off Evening Earnings Report

Brooks McFeely submits:

Blue Coat Systems (BCSI) is due with its Q4 results in tonight's after-hours session, and analysts polled by Thomson Reuters expect the company to report a profit of $0.31 per share on revenue of $121 million.c

BCSI has seen more aggressive follow-on regular session closing levels following 17 of its last 28 after-hours earnings events.

Looking deeper into the data: longs take note, BCSI has posted earnings-driven gains after 12 evening earnings reports. It has extended that move 10 times, or 83% of the time.

On the short side, of the 16 post-earnings extended-hours declines, BCSI has extended its move seven times, or 44% of the time, during next-day trade.

On February 17, 2011, BCSI shed 9% in after-hours trade after missing Q3 expectations and setting Q4 guidance below Street estimates. The stock cut its downside the following day, closing the February 18 regular session down 7.5%.

On November 18,


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