MidnightTrader Earnings Play: Bob Evans Farms

Bob Evans Farms (BOBE | Quote | Chart | News | PowerRating) is due to report Q4 results after the bell tonight, and analysts polled by Thomson Financial are looking for a profit of $0.41 per share on revenue of $441.5 million.

BOBE is one to watch for its recent change in trend. The stock's long-term session-to-session pattern has been to narrow or reverse its price moves in the regular session following an after-hours earnings report, doing so in eight of 15 quarters. In the near-term, the issue has moved to a solid trend of recording a more aggressive next-day trade; doing so in five consecutive quarters.

On Feb. 12, 2008, the stock gained 1.1% during evening trading after a Q3 beat and guidance that straddled the Street view. The gain widened to 7% the next day.

On Nov. 12, 2007, BOBE firmed 4.3% in after-hours trade after reporting Q2 results up from year ago levels. It jumped higher the next day, closing the Nov. 13 regular session up 15.1%.

On Aug. 13, 2007, BOBE edged down 0.1% in after-hours trade after the company reported Q1 results up over year ago levels and reaffirmed guidance. It added to the downside in the Aug. 14 regular session, sliding 5.3% by the closing bell.

On June 4, 2007, BOBE dipped 0.1% in night trade despite topping Q4 and FY07 estimates and offering FY08 EPS guidance that's in line to above Street views. Shares continued to weaken the next day, ending the regular session down 2.3%.

On Feb. 15, 2007, BOBE gained 2.1% in the evening session after the company reported ahead of the Street with EPS though sales miss and guidance straddles. The stock gained by a stronger 4.2% 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.