MidnightTrader Earnings Play: eBay

eBay (EBAY | Quote | Chart | News | PowerRating) is set to post its Q2 results after the bell tonight, and analysts polled by Thomson Financial are anticipating a profit of $0.41 per share on revenue of $2.17 billion.

EBAY is split with its share performance over the last four years, crossing less aggressive next-day percentage closing levels following nine of 17 after-hours earnings events during those years and widening in the other quarters.

In the near term, the stock favors a narrower move, doing so three times in the last four periods, including a reversal of direction last quarter.

On April 16, 2008, the stock edged up 0.09% in evening trading after the company reported ahead of the Street with Q1 results, sets 2008 guidance above Street, Q2 view in line. Shares ended down 3.4% the next day.

On Jan. 23. 2008, the stock fell 5% during evening trading after EBAY reported ahead of the Street with Q4 but disappointed with guidance. The loss was a slightly deeper 6% the next day.

On Oct. 17, 2007, EBAY climbed a mere 0.4% higher in evening trade after beating Street estimates and guiding higher. That upside was pushed aside the following day, and EBAY lost 6.1% in regular session trade.

On July 18, 2007, EBAY slipped 1.7% in after hours despite beating Q2 estimates and raising its FY EPS outlook to in line to above expectations. Shares trimmed their losses the next day to end the regular session down 1.6%.

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.