MidnightTrader's Earnings Play: Skyworks Solutions (SWKS)

Skyworks Solutions (SWKS | Quote | Chart | News | PowerRating) is due to report Q2 earnings results in the extended-hours session after the bell tonight. Wall Street is looking for earnings per share of $0.15 on revenue of $200 million, according to a consensus of analysts polled by Thomson Financial.

Extended-hours trading will be active for this stock as traders hope to take advantage of the first reaction to the latest figures. This stock's track record for building on its extended-hours move is clear.

SWKS has demonstrated a firm tendency over the past four years to widen its after-hours price moves in the next day's regular session following its earnings reports. It has done so following 10 out of 14 reports. The near-term performance favors the widening trend over five of the last six quarters.

On Jan. 17, 2008, SWKS advanced 4.8% in after-hours trade after topping the Q1 Street view and setting its Q2 guidance ahead of expectations. It soared even higher the following day, rising 16.4% by the closing bell on Jan. 18.

On Nov. 1, 2007, SWKS gained 3.3% in after-hours trade after beating expectations by a penny and guiding earnings in-line to higher. It saw that gain narrow slightly the next day, ending the Nov. 2 regular session up 2.1%.

On July 18, 2007, SWKS inched up 2.3% in night trade after topping Q3 EPS estimates. Shares rose further the next day, closing the regular session up 7.6%.

On April 25, 2007, the stock gained 6.8% in the evening hours after beating with sales and reporting in line with EPS. The gain swelled to 20.9% the next day.

On Jan. 25, 2007, the stock fell 2.5% in the evening hours after the company topped with EPS but missed with sales and guided in line. The loss was 3.8% the next day.

On Nov. 1, 2006, the stock was up 3.9% after the company topped with Q4 EPS but missed with sales. The gain expanded to 6% the next day.

Brooks McFeely is widely regarded as the leading expert on extended-hours trading. He is a Managing Partner for Brochet Capital Partners, LP and the founder of Midnight Trader, Inc. (www.midnighttrader.com), the leading provider of pre-market and after-hours trading analysis and news to retail and institutional investors.