Whisper Number: Another Negative Price Reaction After JetBlue Earnings?

JetBlue Airways (NASDAQ:JBLU) is expected to report earnings on Tuesday, July 30th. The whisper number is $0.15, one cent ahead of the analysts’ estimate. Whispers range from a low of $0.14 to a high of $0.16. JBLU has a 22 percent positive surprise history (having topped the whisper in 2 of the 9 earnings reports for which we have data).

Earnings history:

- Beat whisper: 2 quarters
– Met whisper: 2 quarters
– Missed whisper: 5 quarters

Our primary focus is on post earnings price movement. Knowing how likely a stock’s price will move following an earnings report can help you determine the best action to take (long or short). In other words, we look at what happens when the company beats or misses the whisper number expectation.

The table below indicates the average post earnings price movement within a one and thirty trading day timeframe:

JBLU713A

The strongest price movement of -2.9 percent comes within twenty trading days when the company reports earnings that beat the whisper number, and -7.7 percent within thirty trading days when the company reports earnings that miss the whisper number. The overall average price move is ‘negative’ (beat the whisper and see weakness, miss and see weakness) when the company reports earnings.