MidnightTrader Earnings Play: Black Box

Black Box (BBOX | Quote | Chart | News | PowerRating) is slated to report its Q4 results after the bell, and analysts polled by Thomson Financial are expecting the company to report a profit of $0.77 per share on revenue of $241.9 million.

BBOX is one to watch in the extended-hours period as the stock has shown a tendency to widen its after-hours move the next day following an evening earnings event. It has widened its move five times and narrowed twice in the quarters we've tracked.

On Jan. 29. 2008, the stock gained 7.7% during evening trading after an earnings beat. The gain swelled to 14.2% the next day.

On Oct. 30, 2007, the stock fell 4.8% during evening trading after BBOX reported shy of the Street view with its Q2 results. The loss widened to 9.5% the next day.

On Aug 14, 2007, BBOX fell 3.2% in after hours when the company met Q1 EPS estimates and topped on sales. The company also said its distribution agreement with Avaya would be terminated. Shares, bounced back slightly the next day, ending the regular session down 2.7%.

On June 28, 2007, BBOX rose 6% as Q4 EPS beat though revenue shy and company reaffirms guidance that's about in line. The gain was a fatter 13.9% the next day.

On Feb. 12, 2007, BBOX rose 5.9% in night trade after beating Q3 EPS estimates, meeting on sales and predicting FY08 EPS to top Street views. Shares, though, gave back some of those gains the next day to end the regular session up 2.8%.

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.