MidnightTrader Earnings Play: Sonus Networks

Sonus Networks
(
SONS |
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is due to report Q1 results after the bell tonight, and analysts polled by Thomson Financial are expecting a loss of $0.01 per share on $74 million in sales.

SONS is holding to a long-term widening pattern over the last four years, crossing more aggressive next-day trade in eight of the last 13 quarters. In the near-term, the stock is maintaining the widening pattern, posting more aggressive next-day percentage trade in three of four quarters.

On Feb. 28, 2008, SONS declined 8% in evening trade after just missing Q4 revenue expectations. The stock headed further south the following day, losing 14% by the close.

On Nov. 8, 2007, SONS edged up 0.8% in after-hours trade after topping sales expectations. It firmed 6.3% by the closing bell on Nov. 9.

On Aug, 7, 2007, the stock fell 6.1% after reporting a loss vs an expected gain. The share loss was reined in to 2% the next day.

On May 7, 2007, the stock gained 3.8% in the evening hours despite a sales miss. Shares were up 5.7% 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.