On Earnings This Week: Dell, Marvell, Novell Are Tech Stocks You Long To Love
Last week was all about Fannie Mae
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PowerRating) and Freddie Mac
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PowerRating) and this week will be all about technology stocks. Investors have started to move money into the technology sector and out of financials as concerns over the future of Fannie and Freddie loom. If you’re waiting for a good time to jump into the tech action, this may be the week to do it.
Dell Inc.
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PowerRating) reports its second quarter earnings after the bell Thursday and analysts polled by Thomson Reuters expect the software maker to report a 13% jump in earnings of $0.36 per share on an 8% rise in revenue of $15.9 billion compared with the same quarter last year. The company impressed investors last quarter when it beat the street with cost-cutting efforts and strong notebook sales. As a result, shares rose 9.4% in after-hours trading and narrowed that gain the following trading day, closing up 5.7%. So, how do you play this stock into earnings? In the long-term, shares are mixed with a tendency to narrow after-hours moves in next-day regular session trade following half of its last 18 earnings events. If the company beats the Street, longs may want to just take their profit at the open.
Also after the close on Thursday, Marvell Technology Group Ltd.
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PowerRating) reports its second-quarter results. Analysts are betting that the maker of microchips used in iPhones will have a stellar quarter, posting a 250% jump in earnings per share of $0.21 on a 27% rise in revenue of $836.7 million. That kind of growth may be achieved if Apple Inc.’s
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PowerRating) 3G iPhone has done as well as many analysts expect. If you’re long this stock, you may want to hold your position into next day. The stock has a near-term tendency to widen its moves in the following regular session, doing so three out of the past four quarter.
Novell Inc.
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PowerRating) is set to report third-quarter results after the close of trade on Thursday. The software maker’s shares have been bouncing between $6 and $8 per share for a year and recently dipped below $6, so shares may have room to move higher. Analysts have very conservative estimates for company, predicting flat earnings of $0.05 per share and a 1% decline in revenue of $241.4 million, compared with a year ago. The stock is a strong performer between the sessions, demonstrating a consistent tendency to see wider next-day movement following its earnings events, posting more aggressive next day trade following 13 of the last 17 after-hours earnings events MidnightTrader.com has tracked. In the near-term, the stock is maintaining its widening trend, adding to its after-hours performance in next-day trade in three of the last four events. On May 29, 2008, the stock rose 0.6% in after-hours trading after its second-quarter results beat the street. The stock widened its move in the following regular session, ending higher by 5.5%.
Cassie Slane is a Senior Editor at www.MidnightTrader.com.