MidnightTrader Earnings Play: Whole Foods Market

Whole Foods Market (WFMI | Quote | Chart | News | PowerRating) is scheduled to report Q2 results after the bell tonight, and analysts polled by Thomson First Call are expecting a profit of $0.30 per share on revenue of $1.89 billion.

WFMI is one to watch for brisk evening volume following an earnings release. The stock has developed a strong pattern of widening price moves between the sessions following its after-hours earnings-related events, extending its move after 12 of its past 15 earnings-related events. In the near-term, however, the pattern is mixed, with two narrowing and two widening events in the last four quarters.

On Feb. 19, 2008, WFMI edged down 0.1% in after-hours trade after beating on Q1 sales, meeting on earnings, and reaffirming guidance. The stock added to its downside on Feb. 20, ending the regular session down 1.7%.

On Nov. 20, 2007, WFMI gained 1.3% in evening trade after beating Q4 expectations and setting guidance in line to above the Street. The stock saw its upside evaporate the next day as WFMI ended the Nov. 21 regular session down 1.9%.

On July 31, 2007, the stock jumped 8.6% in the evening hours after WFMI reported in line with revenue and tops with EPS. The gain was pared slightly, to 6.7%, the next day.

On May 9, 2007, the stock fell 8.3% after reporting Q2 results shy of estimates. The stock fell 10.1% the next day.

On Feb. 21, 2007, the stock was up 5.1% in the evening hours after missing with sales but topping with EPS. The gain fattened to 14% 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.