VMware Sticks To History Of Reversing Earnings-Driven After-Hours Trade In Next Day Action, Favors Shorts

| About: VMware, Inc. (VMW)

VMware (NYSE:VMW) does not regularly follow-up gains or losses in the next day's session with heftier same-direction trade. Instead, it tends to pull off sharp reversals.

Over the handful of earnings reports we've tracked, the stock favors reversing direction between the sessions; it's narrowed 14 times and in seven quarters has widened its evening share move during the next day's session.

Looking deeper into data, the issue has followed up evening earnings with a gain 13 times, but longs take note: the stock extended that move only four times. On the downside, the stock declined in extended-hours trading eight times, and widened that move three times.

VMware is due with Q4 results after the bell tonight. The average forecast in an analyst survey by Capital IQ is for $0.78 per share in earnings on $1.27 billion in revenue.

Here's a look at past performance:

On Oct. 23, 2012, VMW advanced 2.4% in after-hours trade after beating on Q3 EPS and guiding in-line. The stock narrowed its upside slightly the next day, closing the Oct. 24 regular session up 2.3%.

On July 23, 2012, VMW dropped 3.1% in night trade after beating on Q2 and setting in-line guidance. The stock cut its downside the next day, closing the July 24 regular session off 0.3%.

On April 18, 2012, VMW edged up 2.4% in after-hours trade after topping Q1 estimates. The gains thinned out slightly the next day as the stock closed the April 19 regular session up 2.2%.

On Jan. 23, 2012, VMW gained 4.4% In evening trade after beating on Q4 and setting in-line guidance. It jumped higher the next day, rising 7.7% by the close on Jan. 24.

On Oct. 17, 2011, the stock slipped 0.4% after an earnings and revenue beat. Shares jumped 8.2% the next day.

On July 19, 2011, the stock rose 6.4% after VMW easily beat the Street view with Q2 results. Shares dipped 0.1% the next day.

On April 19, 2011, the stock jumped 11.3% in evening hours following an earnings beat and guidance that topped the Street view. Shares rose 13.8% the next day.

On January 24, 2011, the stock fell 5.3% despite beating with results. Shares dropped 3.9% the next day

On Oct. 18, 2010, the stock fell 4.6% despite a Q3 beat. Shares dropped 6.6% the next day.

On July 20, 2010, the stock gained 4.1% after a quarterly earnings, guidance beat. Shares were up a slimmer 1% the next day.

On April 20, 2010, VMW edged up 0.3% in after-hours action after beating Q1 expectations. The stock surged higher the following day, closing the April 21 regular session up 9%.

On Jan. 25, 2010, the stock was up 17.7% after an earnings beat. Shares rose 12.6% the next day.

On Oct. 21, 2010, the stock edged up 1.5% in evening trading after an earnings report that beat Q3 estimates. Shares reversed to slip 0.3% the next day.

On July 22, 2009, the stock gained 6.7% after a narrow beat with Q2 results. The gain was trimmed to 4.8% during the following day's regular trading session.

On April 22, 2009, the stock tanked 15.1% on a report that beat with EPS but missed with revenue. Shares fell a deeper 20.3% the next day.

On Jan. 26, 2009, the stock fell 2.9% after a Q4 beat but revenue guidance below the Street view. Shares closed down a slightly narrower 2.8% the next day.

On Oct. 21, 2008, the stock jumped 22.8% during evening trading after reporting ahead of the Street with its latest results. The stock gain narrowed to 7.1% the next day.

On July 22, 2008, the stock tanked 14.7% during evening trading after VMW missed with revenue. The loss was trimmed considerably, to 2.5% by the close of the trading the following day.

On April 22, 2008, the stock jumped 14.7% during evening trading after a Q1 revenue beat and upbeat guidance. Shares narrowed that gain to 4.8% the next day.

On Jan. 28, 2008, the stock plunged 23% during evening trading after a EPS beat but revenues well below Street view. The loss swelled to 33.8% the next day.

On Oct. 24, 2007, the stock gained 3.8% after a Q3 beat. The advanced improved to 10.1% the next day.

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.