MidnightTrader Earnings Play: ADC Telecom

ADC Telecom [NASDAQ:ADCT] is due with its Q2 results after the bell tonight. The mean estimate among analysts polled by Thomson Financial is for EPS of $0.30 on revenue of $384.7 million.

ADCT is one to watch for its recent performance. Over the long run, the stock just favors widening its after-hours response to its earnings news during the next day's trading session; it's widened in 10 of 17 quarters. The near-term picture favors a widening pattern in three of the most recent four quarters.

On March 5, 2008, the stock gained 2% during evening trading after ADCT beat with sales and offered mixed guidance. The gain was extended slightly, with shares ending up 3% the next day.

On Dec. 12, 2007, the stock jumped 9.1% during evening trading after ADCT reported a smaller loss than a year earlier and beat the Street with its sales figure. The gain improved to 12.8% the next day.

On Sept. 5, 2007, ADCT rose 5.6% in night trade after reporting higher Q3 sales from a year ago although earnings declined. It also predicted 2007 sales would top estimates. Shares extended those gains the following day, ending the regular session up 7.7%.

On June 6, 2007, ADCT gained 2.6% in evening activity after topping Q2 sales estimates. Shares, though, failed to hold the momentum and closed the next day session up only 0.1%.

On March 5, 2007, ADCT rose 4.9% in after-hours trade when the company swung to a Q1 profit on higher sales from a year earlier. Shares extended their gains the next day, ending the regular session up 5.4%.

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.