MidnightTrader Earnings Play: Sun Microsystems

Sun Microsystems
(
JAVA |
Quote |
Chart |
News |
PowerRating)
is slated to report its Q1 results in the extended-hours on October 30. Analysts polled by Thomson Reuters expect the company to post a loss of $0.08 per share on revenue of $3.06 billion.

JAVA gives just a firm nod to wider next-day share moves following earnings releases in the previous after-hours session, doing so 12 times compared to six narrowing moves over the last five years of quarters we’ve tracked.

In the near-term, the stock has widened its share movement in the last four consecutive quarters.

On July 31, 2008, JAVA declined 9.3% in pre-market trade beating on earnings but also noting it didn’t expect to be profitable in the then-current quarter. The stock turned deeper in the red in the following regular session, sliding 12.3% by the day’s close.

On May 1, 2008, the stock fell 14.8% during evening trading after JAVA missed with Q3 revenue. The loss fattened to 22.6% the next day.

On Jan. 24, 2008, JAVA was up 1.1% in night trade after reporting improved year-over-year Q2 results. The stock recorded a modest bump from these evening levels the next day, rising 1.9% by the closing bell on Jan. 25.

On Nov. 5, 2007, JAVA missed Q1 sales estimates, and the stock lost 2.1% in evening trade. It tumbled deeper in the red the next day, losing 9.6% in the Nov. 6 regular session.

On July 30, 2007, the stock jumped 10.2% in the evening hours after reporting Q4 revenue in line and swinging to profit. The gain was more than halved, to 4.3% the next day, however.

On April 24, 2007, the stock fell 5.8% in the evening trading session after earnings meet the Street’s view but sales miss. The stock slumped 11.2% the next day.

On Jan. 23, 2007, the stock firmed 8.1% after the company reported a swing to profit on higher revenue. The gain expanded slightly, to 8.6% the next day.

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