MidnightTrader's Earnings Play: Semtech

SMTC is one to watch for its extended-hours performance. The stock has mostly shown a long-term session-to-session pattern of narrowing or reversing its post-earnings share move in the following day's regular session; it's done so for 12 of the last 14 quarters. Near term, the issue has narrowed its move in three of four quarters.

On March 4, 2008, the stock gained 6.2% during evening trading after the company beat with Q4 results but guided for Q1 below the Street view. The gain was trimmed slightly, to 5.7% the next day.

On Nov. 27, 2007, the stock fell 6.7% during evening trading despite a Q3 beat and guiding for Q4 EPS above the Street view. The loss was pared slightly, to 6.3% the next day.

On Aug 28, 2007, SMTC gained 7.5% in night trade after beating Q2 estimates and forecasting Q3 above Street views. Shares tacked on more gains the next day, ending the regular session up 10.5%.

On May 30, 2007, SMTC jumped 11.5% in the evening hours after reporting ahead of the Street with Q1 results and guiding higher. The gain was a slightly slimmer 9.1% the next day.

On March 8, 2007, the stock eased 0.2% in the extended-hours session after missing with sales and guiding lower for sales. The issue rebounded to gain 1.8% 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.