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Adobe (ADBE | Quote | Chart | News | PowerRating) is due with its Q3 results after the bell tonight, and analysts polled by Thomson Reuters are expecting the company to post a profit of $0.46 per share on revenue of $877 million.
ADBE maintains a long-term widening pattern between the sessions following after-hours earnings events - a pattern it has held for five years. The stock has seen more aggressive next-day percentage closing levels following 11 of its last 18 after-hours, earnings-driven moves. The near-term pattern is mixed however, with two widening and two narrowing moves in the last four quarters.
Looking deeper into the performance data, longs may be interested to know that ADBE has seen a positive post-bell earnings-driven trade in 10 of the 18 quarters we've tracked, and in eight of those upside evening moves the stock has followed that trade with a more aggressive positive run in the next day's regular session.
Shorts, on the other hand, may want to be a bit more cautious on this one as the stock has recorded downside after-hours trade following eight of the quarters we've tracked. It narrowed or reversed that after-hours downside move in the following regular session in five of those events.
On June 16, 2008, ADBE declined 2.6% in after-hours trade despite beating Q2 expectations and setting its Q3 guidance in line to above estimates. It added to its downside in the June 17 regular session, ending down 3.3%.
On March 18, 2008, ADBE gained 5.6% during evening hours after a profit beat. The gain nearly doubled, to 9% during the next day's regular trading session.
On Dec. 17, 2007, the stock fell 1.8% during evening trading despite a Q4 beat and Q1 guidance largely above the Street view. The stock rebounded to gain 2.7% the next day.
On Sept. 17, 2007, ADBE gained 4.3% in after hours when the company beat Q3 expectations and guided for Q4 to top Street views. However, shares lost their momentum and ended the next day session up only 1.5%.
On June 14, 2007, ADBE dipped 0.8% in the night session despite beating Q2 estimates and forecasting Q3 in line with expectations. Shares fell further the next day, closing the regular session down 2.7%.
On March 20, 2007, ADBE rose 3.5% in after-hours trade when the company topped Q1 EPS estimates but was shy on sales. It also offered guidance in line with expectations. Shares extended those gains the following day, closing the regular session up 6.2%.
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