MidnightTrader Earnings Play: Level 3 Communications

Level 3 Communications
(
LVLT |
Quote |
Chart |
News |
PowerRating)
is expected to report its Q3 results ahead of the opening bell on Thursday, Oct. 23, and analysts polled by Thomson Financial expect the company to post a loss of $0.09 per share on revenue of $1.066 billion.

Within the data pool we’ve accumulated on LVLT we’ve found the issue is favoring a widening pattern between the sessions, seeing eight wider moves, five narrowing events and one trade where the stock did not hit any extended-hours matches. In the near-term, it is steady in a widening trend, doing so in five of the last seven quarterly earnings events.

On July 24, 2008, LVLT gained 10% in pre-bell trade after beating Q2 expectations. The stock saw that gain evaporate in the regular session as LVLT ended the day down 8.4%.

On April 23, 2008, LVLT soared 19.4% in pre-market trade after Q1 revenue topped expectations. The stock saw added gains in that day’s regular session, ending up 22.7%.

On Feb. 7, 2008, LVLT gained 1.9% in pre-market trade after reporting a narrower year-over-year loss and higher revenue. It lost the upside in the Feb. 7 regular session, ending the day down 4.4%.

On Oct. 23, 2007, LVLT tumbled 13.9% in pre-market trade despite posting better-than-expected results. The stock hurtled even lower in the following regular session, losing 24% by the Oct. 23 closing bell.

On July 26, 2007, LVLT fell 6.3% in the pre-market session after reporting. The loss fattened to 12% during regular trading later that day.

On April 26, 2007, LVLT declined 4.2% in pre-market trade after just beating on Q1 revenue and setting its Q2 revenue below Street estimates. It tumbled further in that day’s regular session, losing 7.2%.

On Feb. 8, 2007, LVLT declined 2.7% in pre-market trade after the company reported results above estimates and provided in-line guidance, but it also announced plans to sell notes. The stock headed further south in the regular session, losing 7.3% by the closing bell.

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