Tag Archives: exteneded trading

Earnings Preview: Novell and Marvell Hint To Aggressive Widening Moves

 

novellThe coming week is a shortened one but not without a slew of news.   Investors will hear a number of economic reports including consumer confidence, gross domestic product and durable goods.  Also, a number of companies are slated to report quarterly results including TiVo Inc. (TIVO), Costco Wholesale Corporation (COST), and HJ Heinz Co. (HNZ).

Novell Inc. (NOVL) is slated report its fiscal second-quarter results after the bell Thursday, and analysts expect the company to post earnings of $0.06 per share, even with the same time last year, on revenue of $218 million, according to Reuters Estimates. 

Investors trading into earnings should know that this stock is a strong performer between the sessions, demonstrating a consistent tendency to follow through with more aggressive, same-direction next-day movement following its evening earnings events. It’s posted more robust next day trade following 15 of the last 20 after-hours earnings events we’ve tracked. In the near-term, the stock is maintaining its follow-on trend, adding to its after-hours performance in next-day trade in three of the past four quarters. 

Marvell Technology Group (MRVL) is due with its first-quarter results after the bell Thursday and is expected to report earnings of $0.04 per share, down from $0.24 a year ago, on revenue of $510.6 million. 

Marvell has a tendency to see its after-hours performance narrow or reverse course in next day trade, with only a few exceptions. In the near-term, the stock’s performance is shifting, the stock has widened in three of four quarters with the most recent quarter being the exception.  On March 3, the stock rallied 8.9% in after-hours trading after the company reported results that topped the Street.  The stock trimmed the gain slightly the following regular session, ending up 7.2%.

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