MidnightTrader Earnings Play: Spectrum Control

Spectrum Control (SPEC | Quote | Chart | News | PowerRating) is due with its Q2 results after the bell tonight. The single analyst estimate on Thomson Financial is for earnings of $0.18 per share on $33 million in revenue.

SPEC just favors a widening trend between the sessions, seeing more aggressive next day trade in five of the last nine quarterly reports. In the near-term, over the last four quarters, the stock has widened in two quarters and twice reversed its share move. It reversed its move in the most recent quarter.

On March 27, 2008, the stock gained 1.8% during evening hours despite reporting Q1 results below the year-ago quarter. The stock reversed and closed down 2.8% the next day.

On Jan. 8, 2008, SPEC tumbled 16.6% after reporting a year-over-year drop in Q4 sales. It hurtled lower the following day, losing 30.9% by the close on Jan. 9.

On Sept. 25, 2007, SPEC shed 1.9% in evening trade after just topping on Q3 sales and issuing Q4 guidance in line to below Street forecasts. The stock turned positive on Sept. 26, rising 4.3% by the close.

On June 26, 2007, the stock gained 6.5% in the evening hours after reporting ahead of the Street with Q2 results. The gain swelled to 17.8% the next day.

On March 29, 2007, the stock jumped 12.6% in the evening session after Q1 results topped the Street view. The gain expanded just slightly the next day, with shares closing up 12.8%.

On January 8, 2007, SPEC dropped 8.7% in night trade despite improved Q4 results from a year ago. The shares trimmed their losses the next day, but still ended the next day session down 8.2%.

On September 20, 2006, SPEC slid 6% in evening activity despite higher Q3 results from a year ago and a forecast for Q4 sales to rise from the same period last year. Shares widened their losses the following day, closing the regular session down 7%.

On June 22, 2006, SPEC soared 23.3% in after-hours trade when the company reported higher Q2 results from the previous year's period and issued Q3 and Q4 guidance. The shares added to those already strong gains, closing the next day session up 29.8%.

On March 21, 2006, SPEC edged up 1.8% in post-bell trade despite lower Q1 profits from a year ago. The shares, though, fell the next day, ending the regular session down 7.3%.

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.