Linear Technology (NASDAQ:LLTC) has developed a post-earnings trading pattern more convincing for longs, as this stock tends to build on its upside post-earnings move.
LLTC's session-to-session trading pattern following earnings favors a widening trend, doing so following 19 of its last 31 after-hours earnings releases.
Looking deeper into the data, LLTC shares have responded to earnings news with gains 10 times, extending that move in the following regular session seven times, or 70% of the time. LLTC shares have responded to earnings news with declines 20 times, extending that move in the following regular session on five times, or 25% of the time. There was one other quarter where the issue saw a flat evening move followed by a next-day decline.
Linear Technology is scheduled to report fiscal Q2 results tonight, and on average, analysts polled by Capital IQ expect the company to earn $0.40 per share on revenues of $310.3 million.
Historical data follows:
On Oct. 16, 2012, LLTC declined 2.3% in evening trade after posting mixed Q1 results. The stock cut its downside the next day, ending the Oct. 17 regular session off 1%.
On July 24, 2012, LLTC dipped 0.03% in after-hours trade after beating on Q2 EPS and meeting on revenue. The stock reversed direction the following day, ending up 3.3% in the July 25 regular session.
On April 17, 2012, LLTC ended the evening session flat after reporting a year-over-year decline in Q3 results. The stock edged slightly lower the next day, closing the April 18 regular session down 0.3%.
On Jan. 17, 2012, LLTC advanced 7.6% in evening action after posting mixed Q2 results and guiding for Q3 revenue up sequentially. The stock surged higher the next day, closing the Jan. 18 regular session up 11.5%.
On Oct. 18, 2011, LLTC shed 3.8% in evening trade after posting weaker-than-expected results and guidance. The stock narrowed its downside the next day, ending the Oct. 19 regular session down 2.5%.
On July 26, 2011, the stock fell 4.3% in after-hours trading after an EPS beat but revenue miss. The stock fell a slightly slimmer 3.5% the next day.
On April 19, 2011, the stock ended barely in positive territory after its earnings report. Shares finished up a more convincing 3.8% the following day.
On January 18, 2011, the stock fell 4% after the company beat with Q2 results but guided below the Street view. Shares fell 4.3% the next day.
On Oct. 12, 2010, the stock fell 3.4% in extended-hours trading after a sales beat but an earnings miss. Shares fell a smaller 2.4% the next day.
On July 20, 2010, the stock fell 1.5% despite an earnings beat. Shares fell a deeper 3.3% the next day.
On April 13, 2010, the stock gained 2.7% after a Q3 beat. Shares were up 5.3% the next day.
On Jan. 13, 2010, the stock gained 0.5% during pre-market trading after a Q2 beat. Shares fell 1.1% during regular action later in the day.
On Oct. 13, 2009, LLTC advanced 1.8% in after-hours trading after beating Q1 expectations. The stock reversed course the following day, ending the Oct. 14 regular session down 2.1%.
On July 21, 2009, the stock gained 3.8% in evening trading after a Q4 beat and Q1 guidance above the Street view. The gain swelled to 8.2% the next day.
On April 14, 2009, the stock fell 2% in the after-hours session after LLTC beat with Q2 results but guides for Q3 below the Street. Shares fell a deeper 2.8% the next day.
On Jan. 13, 2008, the stock fell 3.5% after Q2 results fell from the year-ago quarter. The following day, the stock fell a deeper 4.1%.
On Oct. 14, 2008, the stock fell 13.5% during extended-hours trading after a Q1 beat but Q2 revenue guidance below Street. The loss widened to 15% the next day.
On July 22, 2008, LLTC shed 2.9% in after-hours trade after beating Q4 earnings expectations and meeting on revenue. The stock dipped further into the red the next day, closing down 4.1% in the July 23 regular session.
On April 15, 2008, LLTC advanced 2.6% in after-hours activity after beating Q3 expectations. The stock chugged higher the following day, rising 4.8% by the close on April 16.
On Jan. 15, 2008, LLTC gained 1.9% during evening trading after the company topped with Q2 EPS and about met with sales. The gain stretched to 3.8% the next day.
On Oct. 16, 2007, LLTC edged down 0.1% in after-hours trade after topping on Q1 earnings results and forecasting a sequential rise in Q2 results. The stock added to its downside in the Oct. 17 regular session, declining 2.4% by the closing bell.
On July 24, 2007, LLTC rose 4.7% in night trade after beating Q4 estimates and guiding higher for Q1. However, shares lost their momentum the next day and ended the regular session up only 1.5%.
On April 17, 2007, LLTC jumped 9.3% in after hours when the company beat Q3 estimates and set an accelerated buyback program. Shares rose further the following day, closing up 12.2%.
On Jan. 16, 2007, the stock fell 2.2% after a miss with Q2 revenue. The next day, the decline narrowed somewhat, to 1.8%.
On Oct. 17, 2006, LLTC dropped 4.7% in after-hours trade when the company predicted Q2 results would fall sequentially. The company beat Q1 earnings estimates that night. Shares fell further the next day, ending the regular session down 7%.
On July 25, 2006, shares fell 5.7% in the evening session after the company reported revenue below the Street view, although EPS ahead. The loss was reined in to 2.8% the next day.
On April 18, 2006, LLTC fell 0.7% after the company missed on its sales estimates and met on EPS. It declined a bit more the next day, losing 1.5% by the closing bell.
On Jan. 17, 2006, LLTC declined 2.6% in evening trade after reporting in-line revenue, beating on EPS and guiding to match or beat expectations. Despite the solid results, the stock continued its downside move on Jan. 18, ending regular session trade down 2.9%.
On Oct. 18, 2005, LLTC fell 2.2% in after-hours trade after the company came in shy on sales but beat on earnings. The stock recorded a decline just a hair deeper south on Oct. 19, losing 2.3% by the regular session close.
On July 26, 2005, LLTC reported Q4 sales that just missed estimates and guided for flat Q1 sales versus Q4. The shares tumbled 4.2% in after hours but narrowed its losses during the following day session. It closed the next day's regular-hours session down 3.3%.
On April 19, 2005, LLTC beat Q3 expectations but guided Q4 lower. The shares eased 0.7% in the after hours session and further widened their losses the next session, ending the day session down 6.5%.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.