MidnightTrader Earnings Play: ADC Teleco

ADC Telecom (ADCT | Quote | Chart | News | PowerRating) is due with its Q3 results after the bell tonight. The mean estimate among analysts polled by Thomson Reuters is for EPS of $0.26 on revenue of $388.6 million.

ADCT is one to watch for its recent pattern of extending its share move the day following an evening earnings release. Longer term, the stock just favors widening its after-hours response to its earnings news during the next day's trading session; it's widened in 11 of 18 quarters.

On June 4, 2008, the stock gained 3.9% after beating with Q2 sales, guiding above Street for sales. The gain more than doubled, to 9.1%, the next day.

On March 5, 2008, the stock gained 2% during evening trading after ADCT beat with sales and offered mixed guidance. The gain was extended slightly, with shares ending up 3% the next day.

On Dec. 12, 2007, the stock jumped 9.1% during evening trading after ADCT reported a smaller loss than a year earlier and beat the Street with its sales figure. The gain improved to 12.8% the next day.

On Sept. 5, 2007, ADCT rose 5.6% in night trade after reporting higher Q3 sales from a year ago although earnings declined. It also predicted 2007 sales would top estimates. Shares extended those gains the following day, ending the regular session up 7.7%.

On June 6, 2007, ADCT gained 2.6% in evening activity after topping Q2 sales estimates. Shares, though, failed to hold the momentum and closed the next day session up only 0.1%.

On March 5, 2007, ADCT rose 4.9% in after-hours trade when the company swung to a Q1 profit on higher sales from a year earlier. Shares extended their gains the next day, ending the regular session up 5.4%.

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