MidnightTrader’s Earnings Play: QLogic
QLogic
(
QLGC |
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PowerRating) is slated to report its Q4 results after the bell tonight, and analysts
polled by Thomson Financial are forecasting a profit of $0.26 per share on revenue
of $150 million.
QLGC is one to watch in evening trading, as it has consistently favored a widening
share move after earnings. The stock has generated more aggressive next-day action
in the last four consecutive quarters. In the long term, the stock has seen more
aggressive next-day percentage closing levels in 12 of its last 16 earnings events.
On Jan. 23, 2008, QLGC advanced 0.9% in after-hours trade after topping Q3
expectations. The stock firmed higher the next day, rising 2.1% by the close
on Jan. 24.
On Oct. 23, 2007, the stock gained 4.6% during evening trading after QLGC reported
ahead of the Street with Q2 results. The gain improved to 11% the next day.
On July 26, 2007, the stock fell 5.2% in evening trading after missing with
revenue and matching with EPS. The loss was a deeper 15.7% the next day.
On May 3, 2007, the stock fell 5.1% in the evening session after missing Q4
earnings expectations. The loss was a deeper 6.8% the following day.
On Jan. 23, 2007, QLGC dropped 5.5% in after hours when the company topped
Q3 EPS estimates but guided for Q4 below Street views. Shares held losses but
trimmed them the next day. They closed the regular session down 5.3%.
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.