Wall Street Horizon Blog

Our Condolences to Those Who Missed the 5% Pop in HHC's Stock

Posted by Eric Soderberg on Nov 11, 2015 9:07:00 AM

The majority of publicly traded companies pre-announce when they will release their quarterly earnings results. By doing so shareholders, analysts, institutional investors and anyone else interested in the company's financial performance, can get online and wait for that moment when the company's 10-Q gets filed with the SEC and the press release comes across the wire. 

If you are interested in how the Howard Hughes Corporation (NYSE: HHC; $5B Market Cap; @$130/share) is doing, however, you'll be out of luck.  That's because HHC is one of the hundreds of companies that has chosen not to pre-release the timing of their earnings announcements.

So what is an interested investor supposed to do?  Well, you could try calling the company's investor relations department for the earnings date, but unless you manage billions it's unlikely you will be able to speak with the person behind the name "Info".  If you are an institutional investor or trader you could also rely on the date you see on that $2,000/month service that sits on your desk because for that kind of money the earnings dates must be accurate, right?

Well, as the following email correspondence between Wall Street Horizon and a client illustrates, having the correct earnings date for HHC could have yielded the HHC buyer a nice single day return of around 4-5%.

Actual e-mail correspondence from Monday and Tuesday regarding HHC earnings date  . . .

Client (11/9; 12:05pm): Please check earnings date.  WSH is showing that HHC will report earnings after market close on 11/9/2015 (today).  Bloomberg shows that they will report on 11/20/2015.

WSH (11/9; 1:24pm): Howard Hughes Corporation (HHC) is listed as a Large Accelerated Filer with the S.E.C. and with a quarter-end date of 09/30/2015, that means their Q3 2015 10Q filing due date with the S.E.C. is today, 11/09/2015.  Also, for the last 4 quarters, they have issued their quarterly results on their S.E.C. due dates.  Even if they filed for a 5-day extension with the S.E.C., they would need to file their quarterly 10Q no later than 11/16/2015.

Client (11/9; 1:31pm): Thanks

WSH (11/10; 8:41am): Hi NAME, it looks like HHC reported last night which was spot on with research.  Just fyi .... Thanks.

Client (11/10; 8:43am): So glad we are using your data as the primary source.

So the moral to the story is this: If you appreciate the fact that corporate events, like earnings dates, will cause volatility in a stock's price, it's best to make sure that you have the correct dates.