MidnightTrader Earnings Play: Xyratex

Xyratex (XRTX | Quote | Chart | News | PowerRating) is due with its Q3 results after the bell tonight. The average forecast in a survey of analysts by Thomson Reuters is for earnings of $0.38 per share on $285 million in revenue.

Over the past few quarters, the stock has shown a strong tendency to reverse or narrow its next-day price move following an evening earnings release. It's done so in eight of the last 10 events we've tracked; one of the exceptions was last quarter.

On June 25, 2008, the stock fell 5.8% during evening trading after reporting ahead of the Street with Q2 results but guiding for Q3 to miss. The loss more than doubled, to 13.9%, the next day.

On March 27, 2008, XRTX gained 6.5% in night trade after beating on Q1 and setting its Q2 guidance in-line to above expectations. The stock narrowed its upside in the following day's regular session, closing with a 4.5% rise.

On Jan. 8, 2008, the stock fell 3.9% during evening hours after XRTX reported ahead of the Street with Q4 results. The stock rebounded to close up 8.5% the next day.

On Sept. 26, 2007, XRTX dropped 6.4% in night activity on disappointing Q4 guidance. Shares, though, managed to claw back the next day and end the regular session up 0.7%.

On June 27, 2007, the stock slipped 0.09% in the evening hours after XRTX reported its latest results. The stock rebounded to post a modest 0.9% gain the next day.

On March 27, 2007, shares eased 0.8% in the extended-hours session after the company reported results that beat but guidance that straddles the Street's view. The stock was flat the next day.

On Jan. 4, 2007, XRTX fell 4.3% in the evening hours after the company beat the Street with Q4 results and offered guidance that straddled the Street's view. The stock was up 4% the next day.

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