MidnightTrader Earnings Play: Applied Materials

Applied Materials (AMAT | Quote | Chart | News | PowerRating) is due with its Q3 results after the close tonight, and analysts polled by Thomson Financial are expecting the company to report a profit of $0.14 per share on revenue of $1.8 billion.

AMAT has a tendency to narrow its after-hours movement the next day following an evening earnings event. It has done so after 11 of the last 17 earnings events. The near-term performance is mixed, however, with two narrower moves and two wider moves in the last four quarters.

Here's the action from the past year.

On May 13, 2008, the stock gained 1.4% during evening trading after beating Q2 results but guiding for a drop in Q3 orders. The gain was trimmed to 0.2% the next day.

On Feb. 12, 2008, the stock gained 4.4% during evening trading after a Q1 beat and largely upbeat guidance. The stock jumped 10.1% the next day.

On Nov. 14, 2007, AMAT declined 4.8% in after-hours trade after beating earnings expectations but also setting guidance below the then-current Street view. The downside was reversed in the Nov. 15 regular session, with AMAT ending the day up 0.3%.

On Aug 14, 2007, AMAT slipped 3.2% in after hours despite beating Q3 estimates. It also issued Q4 guidance. Shares eased further the next day, closing down 4.1% in the regular session.

On May 15, 2007, AMAT dropped 3.9% in night trade after topping Q2 estimates but predicting Q3 orders to drop 10-15%. Shares recovered slightly the next day, ending the regular session down 3%.

On Feb. 13, 2007, shares were up 4.3% in the evening hours after the company beat with EPS though missed with sales. The gain was pared to 3.8% the next day.

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