MidnightTrader Earnings Play: Finisar

Finisar (FNSR | Quote | Chart | News | PowerRating) is due with its Q4 results after the bell tonight, and analysts are expecting the company to report a profit of $0.03 per share on revenue of $117 million, according to Thomson Financial.

The stock is one to watch in the extended hours for its consistency. In looking back on FNSR's historical session-to-session performance following earnings, we've found the stock has developed a pattern of posting wider next-day movement following quarterly results. The stock has seen wider next-day percentage closing levels in 13 of its last 16 after-hours earnings events. The near-term pattern also favors a widening pattern, with all four of the most recent quarters following this trend.

On March 3, 2008, FNSR fell 1.3% during evening trading after meeting with Q3 results. The loss swelled to 19% the next day.

On Dec. 5, 2007, the stock closed the evening session flat after a Q2 miss but jumps 16.8% the next day when Q3 sales guidance exceeds the Street estimate.

On Sept. 4, 2007, FNSR slid 9.8% in evening activity after reporting Q1 sales that were about in line with expectations. Shares, though, continued to fall and close the next day session down a sharp 21.5%.

On June 12, 2007, the stock gained 1.9% despite reporting revenue shy of year ago and Street view. The company did not release EPS figures due to its ongoing options review. The gain fattened to 7.3% the next day.

On March 5, 2007, FNSR finished just in the red, down 0.3% after the company missed with its sales figure. The stock rebounded to gain 2.6% 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.