Tag Archives: gross domestic product

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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Dell’s Stock Scrapes The Bottom Ahead of Earnings

dellStocks breached their November lows last week and investors will be closely watching to see if they break below their newly set lows. Also this week, the latest readings on gross domestic product and durable goods orders will likely move markets.

As far as earnings go, retailers will be in the spotlight as Gap Inc. (GPS), Target Corp. (TGT), Nordstrom Inc. (JWN), and Kohl’s Corp. (KSS) all report results this week.

Kohl’s is one stock that traders may want to pay attention to going into earnings. The retailer is set to report its fourth-quarter results after the bell on Thursday, and analysts polled by Thomson Reuters are expecting a profit of $1.03 per share, down 21% from a year ago, on revenue of $5.2 billion.

Kohl’s has a tendency to widen between sessions, doing so in 12 of its last 17 quarterly reports. In the near-term, the stock has widened its losses in all of its last four quarters. Traders going short may want to find a ceiling and jump in ahead of the following day’s regular session.

Also Thursday, Dell Inc. (DELL) reports its third-quarter results after the close of trading. The stock fell to its lowest level since July 1997 on Thursday and many shorts have started to exit the stock. Dell’s short interest dropped 12% over the last two weeks of January as the stock plummeted.

Dell is expected to earn $0.28 per share, down 10% from a year ago, on revenue of $14.5 billion, according to analysts. With shares so washed out, investors may want to take a chance ahead of earnings. The stock is mixed between sessions after earnings events, widening its after-hours moves in next-day regular session trade following nine of its last 19 earnings events. In the near-term, the stock is also mixed, cutting back its evening performance in next-day trade once, reversing direction once and widening two times in the four most recent quarters. On November 20, the stock zoomed up 5.9% in after-hours trading but reversed its move in the following days’ regular session, ending down 5.1%.

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