Tag Archives: motorola

Earnings Play: Baidu and Akamai Pointing Toward Widening Moves

baiduInvestors will continue to hear earnings results from a number of companies this week including Starbucks (SBUX) and Motorola (MOT),  just to name a few. On Wednesday, investors will also get their first peak at how well the economy fared in the first-quarter, when advanced gross domestic product is released.

Baidu.com (BIDU) is due to report first-quarter results after the close on Monday. Analysts expect China’s top Internet search company to report earnings of $0.75 per share, up from $0.60 a year ago, on revenue of $115.2 million. Shares have gained 63% since the beginning of the year as advertising sales start to pick up. On April 17, the company it had seen a significant rise in advertising since late January, as business sentiment improved in the world’s third largest economy

Baidu is one for longs to watch as the stock has shown a strong tendency in the near-term to widen its next-day share move following its post-earnings share performance in the preceding evening session. It’s done so four out of the last four quarters MidnightTrader.com has tracked. Three out of four of those move were to the upside. On February 18, shares rose 0.7% in the after-hours and widened the next day, ending up 3.5%.

Akamai Technologies (AKAM) releases its first-quarter results after the close of trading Wednesday. Analysts expect the company to report earnings of $0.40 per share, down from $0.41 a year ago, on revenue of $208.3 million.

AKAM has recorded more aggressive next-day closing levels following 16 of its last 21 after-hours earnings events. In fact, the stock has seen wider next-day moves in 13 of its last 15 earnings periods and in the last four out of five quarters. On February 4, the stock rose 7.4% in after-hours action and widened its move the next regular session, ending up 18.1%.

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Earnings This Week: Visa May Reverse Direction For a Fourth Straight Quarter

visajpgEarnings season continues this week with companies from Walt Disney (DIS) to Northrop Grumman (NOC) reporting results. However, investors will be looking to the end of the week for the most significant report: January’s Employment Report. The unemployment rate is expected to climb from December’s rate of 7.2% as companies continue to slash jobs in every area of the economy.

As for earnings, Motorola Inc. (MOT) is expected to report fourth-quarter results before the market opens on Tuesday. The cell-phone maker is expected to report even earnings, compared with 14 cents a share a year ago, on revenue of $7.2 billion, according to Thomson Reuters. Longs should be wary of Motorola going into earnings. The stock has put up a mixed performance between its extended-hours trade and the following regular session after an earnings event. It has widened its move in 10 of the last 19 earnings-events, and only four of those moves were higher. The near-term is also mixed, with two widening moves and two narrowing. On October 30, shares rose 2.5% in the pre-market before closing the regular session down 5.3%.

Visa Inc. (V) will report first-quarter results on Wednesday after the market close and is expected to report earnings of 66 cents per share on revenue of $1.7 billion. Visa is not a stock for after-hours traders to bet the house on as it has demonstrated a tendency to see its earnings-driven after-hours moves post sharp reversals in next-day regular session trade, doing so in three of the past three quarterly reports. In the three quarterly reports MidnightTrader.com has tracked thus far, the stock has once turned from an after-hours upside move to a next day closing decline and twice seen its evening decline reverse to end the following regular session to the upside.

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