MidnightTrader Earnings Play: Analog Devices

Analog Devices (ADI | Quote | Chart | News | PowerRating) is due to report Q3 results after the bell tonight, and analysts polled by Thomson Financial expect the company to post a profit of $0.45 per share on revenue of $660.5 million.

ADI has shown a relatively consistent tendency to widen its next-day move after an after-hours earnings release, doing so in 10 of the last 13 events we've tracked. Near term, the stock has widened in three of four quarters.

On May 20, 2008, the stock fell 1.5% during evening trading after ADI beat Q2 expectations and guided in line to above the Street. The loss increased to 4% the following day.

On Feb. 20, 2008, the stock gained 3.7% in evening trading after ADI reported shy with revenue. The stock gained 3.2% the next day.

On Nov. 27, 2007, the stock gained 2.5% during evening hours after ADI reported in line with EPS and offered mixed guidance. The gain improved to 3.2% the next day.

On Aug 21, 2007, ADI dipped 1.3% in night trade despite topping Q3 estimates. Its guidance was mixed. Shares eased slightly more the next day, ending the regular session down 2.2%.

On May 22, 2007, the stock fell 5.9% in the evening hours after the company reported Q2 revenue up over the year-ago period but earnings edge lower. The loss was a steeper 9.9% the next day.

On Feb. 21, 2007, the stock gained 5.1% in the evening hours after an earnings miss but sales that beat. The gain expanded to 10.4% the next day.

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