InfoSpace Favors Shorts By Extending Post-Earnings Declines

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InfoSpace (NYSE:INSP) is due to report its Q3 results after the bell today. The Thomson Reuters mean analyst estimate calls for earnings of $0.10 per share on $55 million in revenue.

INSP is mixed with its next-day trade performance following an evening earnings report. It has reversed its move on the heels of 16 of its last 31 evening earnings reports, widening in 14 and once following up flat evening trading with a next-day gain. The near-term picture is mixed, including two widening moves, one narrowing move and one instance of flat trade followed by a moderate gain.

Longs will note, the stock has put up a share gain 17 times in response to earnings news, extending that move just six times in the following regular session.

On the downside, 13 post-earnings declines have been recorded. Shares have extended that move eight times.

On July 28, 2011, the stock ended the evening session flat after a Q2 earnings beat and sales miss. Shares rose 3.4% the next day.

On April 27, 2011, the stock jumped 18.3% in after-hours trading following a report showing an earnings beat and in-line guidance. That gain was trimmed to 6.2% the next day.

On February 2, 2011, the stock gained 3.3% in after-hours trading after a revenue beat and in-line guidance. Shares jumped 5.5% the next day.

On Nov. 4, 2010, the stock fell 1% in after-hours trading after a Q3 miss and guidance for a Q4 miss. Shares tumbled 16.1% the next day.

On Aug. 2, 2010, INSP edged up 1.2% in after hours despite disappointing results and guidance. The stock turned into the red the following day, closing the Aug. 3 regular session down 3.8%.

On May 5, 2010, INSP gained 5.1% in after-hours trading after meeting Q1 expectations and setting mixed guidance. The stock lost its upside the following day, closing the May 6 regular session down 6.6%.

On Feb. 3, 2010, INSP declined 2.8% in evening trading after beating Q4 expectations but also issuing Q1 guidance below the Street view. The stock cut its downside slightly the next day, ending the Feb. 4 regular session down 2.5%.

On Oct. 28, 2009, INSP jumped 5% in after-hours action after reporting mostly better-than-expected results and guidance. The stock cut its upside the following day, ending the Oct. 29 regular session up 3.6%.

On August 5, 2009, the stock jumped 11.2% in evening trading. The gain was a nearly identical, but slightly improved 11.4% the following day.

On May 6, 2009, the stock fell 2.7% during evening trading after missing with earnings but meeting with revenue. Shares fell by a more aggressive 7.2% the following day.

On Feb. 11, 2009, INSP declined 2% in after-hours trading despite beating Q4 expectations and setting its revenue guidance above the Street view. The stock dropped deeper south the next day, closing the Feb. 12 regular session down 19.8%.

On Nov. 5, 2008, the stock fell 7.1% after the company reported a narrower loss but guided for revenue below the Street view. The share decline increased slightly to 8.2% the next day.

On Aug. 5, 2008, INSP advanced 12.5% in night trading after beating expectations and guiding largely in line with Street estimates. The stock soared higher the next day, closing the Aug. 6 regular session up 21%.

On April 30, 2008, the stock fell 8% during evening trading after the company reported a wider loss than in the year-ago period. The loss expanded to 14% by the close of regular trading later that day.

On Feb. 5, 2008, INSP advanced 7.3% in after-hours trading after reporting Q4 results that were up sharply over year ago levels. The stock lost much of its gain the following day, closing with a thin 0.9% rise.

On Nov. 1, 2007, the INSP gained 3.8% in evening trading after the company reported its latest results, including a revenue miss. The gain was pared to 0.3% the next day.

On Aug 8, 2007, INSP slid 10.1% in evening hours after missing Q2 estimates and issuing guidance below Street views. Shares fell further the next day to end the regular session down 16.6%.

On April 26, 2007, INSP edged up 1% in after hours despite lower Q1 results from a year ago. The company also set a special dividend. Shares fell the next day, though, closing the regular session down 7%.

On Feb. 1, 2007, INSP dropped 4.6% in night trading after missing Q4 sales estimate and guiding for a loss in Q1. Shares recovered most of their losses the next day, ending the regular session down only 0.1%.

On Nov. 2, 2006, the stock fell 2.7% after the company swung to a loss and guided below the Street. The loss narrowed to 0.6% the next day.

On Aug. 2, 2006, the stock fell 2% in the evening hours despite beating the Street and guiding above for Q3. The share move was pared back to 0.6% the next day.

On April 26, 2006, INSP edged up 0.7% in evening trading after topping Q1 sales estimates and guiding for Q2 sales to be above forecasts. However, the shares couldn't hold their slim gains and ended the next day's regular session down 1.8%.

On Jan. 25, 2006, INSP lost 2.6% in night trading after beating on Q4 but setting Q1 sales guidance shy of the then-current Street view. The stock was hit for deeper losses in the Jan. 26 regular session, ending down 4.2%.

On October 25, 2005, INSP jumped 17.8% in after hours on better-than-expected Q3 results and a Q4 earnings forecast that was above Street estimates. However, the shares trimmed gains the next day, ending the regular session up 13.5%.

On July 26, 2005, INSP slid 30.7% in evening trading after missing Q2 sales estimates and cutting Q3 and full-year forecasts. The stock narrowed its losses slightly the next day, ending the regular session down 30.4%.

On April 26, 2005, INSP was hammered 20.4% lower in night trading after the company beat Street expectations but guided below the then-current analyst view. Sellers continued to butcher the issue the next day, closing it down 27.3% between the bells on April 27.

INSP soared 18.8% in the Jan. 25, 2005 after-hours session after the company blew past Q4 expectations and set its forward outlook above the Street view. Buyers kept the upside humming higher in next-day trade, launching the issue to a 25.5% gain by the Jan. 26 bell-to-bell close.

INSP recorded lackluster play following its Oct. 25, 2004 evening earnings report, edging up 1% in night trade on better-than-expected results and guidance. It lost what little upside steam it had the next day, closing the Oct. 26 regular session down 0.06%.

Prior to the Oct. 25-26 event, INSP was consistent in seeing more volatile next-day action. The stock had seen its after-hours moves spike wider following two of its previous three earnings-related events.

INSP ramped 22.8% higher the night of July 28, 2004 after the company beat expectations and guided higher. It soared 28.3% by the close of the following day's regular session.

After spending much of the night of April 28, 2004 deep in the red, INSP turned around late in the evening session and eked out a 1.2% rise after reporting in-line results and in-line to lower guidance. The late session rebound proved to be a disappointing head-fake for longs as the stock returned to its downside on April 29 and ended the regular session down 13.1%.

On Jan. 27, 2004 INSP jumped 18.9% in night trading after the company topped expectations and guided higher. It rocketed 28% by the close of the next day's regular session.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.