Blue Coat Systems (BCSI, $16.00, down $0.54) was scheduled to report earnings after the bell on Wednesday but delayed the announcement until next week. The company said it needed the extra time to complete the books for the quarter that ended April 30th. That is not a good sign if you are a shareholder.
The company also added the postponement was due to a recently identified “irregularity” with one of its shipments in its European operations. What we want to watch for is the earnings number. Blue Coat is expected to report earnings of 18-24 cents a share on revenue of $112-$118 million. Wall Street has got them penciled in at 21 cents, $114 million.
Usually something like this is not going to produce an earnings surprise and it’s possible this event is no big deal. But it is an interesting development. There may be a trade but we will have to wait to see how this one shakes out.
The good news is that if there is a trade, you will soon have access to it. I have been mentioning the changes we are making and I’m so excited that I can hardly wait to reveal the details.
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Back to Blue Coat… the stock was down 10% in after-hours trading last night. The June 17.50 calls (IYUFQ, $0.75, down $0.11) traded 1,200 contracts and hit a high of $1.00 on Wednesday. The June 15 puts (IYURC, $0.85, up $0.20) traded about 400 contracts so traders were taking the bullish side of the trade going into the close.
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