The majority of investors polled are expecting the company to provide a positive outlook:Ĭhesapeake earnings have historically given investors a negative surprise as they have fallen short of investor expectations more times than exceeded: The strongest price reaction is seen in a thirty day period following their reports, when the stock has seen (on average) a +11.3% price move when topping the whisper, and a -12.3% price move when missing the whisper. On average, Chesapeake has seen strength when beating the whisper number and weakness when missing the whisper over a one, twenty, and thirty day period following earnings. However, further analysis shows a consistent price reaction over the past four years of earnings reports. Longer term earnings analysis (last four years of earnings) shows the company tends to see (on average) negative price movement of +0.1% (intra-day) in one trading day following their earnings report, and +1.2% in five trading days - a limited but positive price move.Ĭhesapeake has topped the whisper number in three of the past four quarters, but during this time they've lacked a consistent price reaction. In other words if you took a long position prior to the earnings release you would have made a limited winning trade in two of the last four quarters. Over the past four quarters the average price move in after hours trading following their earnings reports is +0.6%, a limited but positive price move. Since Chesapeake reports earnings after the market closes, it's important to look at after hours trading activity. We'll take a look at the average post earnings price movement, when those moves occur, and if Chesapeake presents an earnings trade opportunity. Trading on an earnings event requires an understanding of post earnings price movement, both after hours and intra-day. Chesapeake has exceeded the whisper number in only 13 of the 30 earnings reports we have data. The whisper number is $0.68, four cents ahead of the analysts estimates. Chesapeake Energy ( NASDAQ: CHK) reports fiscal fourth quarter earnings on Tuesday, February 22nd, after the market closes.
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