Photronics Favors Reversing Earnings-Driven After-Hours Declines and Gains

May.16.11 | About: Photronics, Inc. (PLAB)

Photronics (NASDAQ:PLAB) is due with its Q2 results after the close tonight, and analysts polled by Thomson Reuters are expecting the company to report a profit of $0.16 per share on revenue of $120 million.

PLAB favors reversing direction between the sessions in its long-term historical data, posting reversal moves in 15 of the last 26 quarters that we've tracked. In the near-term, the stock is holding to a reversal trend, cutting back or narrowing its evening performance in next-day regular session trading in six of the last seven quarters.

Looking deeper into the data, PLAB has posted evening declines over eight quarters in our database but does not tend to hold that move. It's only widened its downside move three times, or 38% of the time.

As for long plays, the stock has responded to earnings news with a gain 13 times but has difficulty building on that move. The stock has narrowed or reversed its post-earnings upside move in next-day trading in 10 those 13 quarters, or 77% of the time.

In four other quarters the stock was flat in evening trading and followed that move with either a next-day decline or gain. In a separate fifth quarter no data was recorded.

On Feb. 15, 2011, PLAB advanced 6.9% in evening trading after the company topped Q1 expectations. The stock soared the following day, closing the Feb. 16 regular session up 15.8%.

On Dec. 6, 2010, PLAB gained 1.7% in after-hours action after reporting mixed Q4 results. The stock dropped into the red the next day, closing the Dec. 7 regular session down 0.5%.

On Aug. 17, 2010, PLAB was flat in after-hours trading after beating Q3 estimates. The stock advanced 2.5% in the Aug. 18 regular session.

On May 18, 2010, the stock jumped 10% in evening trading as the company swung to an unexpected Q2 profit and a sales beat. Shares reversed, however, and closed down 1.4% the next day.

On Feb. 16, 2010, the stock gained 5.5% after a Q1 earnings beat. Shares fell 5.1% the next day.

On Dec. 8, 2009, shares dropped 8.1% in evening trading after a sales miss. The stock fell a slimmer 5.3% the next day.

On Aug. 18, 2009, PLAB advanced 1.9% in after-hours trading after beating Q3 expectations and issuing a wider-than-expected Q4 loss forecast. The stock lost its gain the following day, ending the Aug. 19 regular session down 8.4%.

On May 19, 2009, the stock fell 4.9% in evening trading after reporting weaker sales. Shares closed flat the next day.

On Feb. 17, 2009, the stock was flat in the after-hours session after a Q1 miss. Shares fell 5.5% the next day.

On Dec. 16, 2008, shares jumped 13.7% during extended hours after the company reported a slim profit for the quarter, not the loss that the Street expected. Shares closed up 9.5% the following day.

On Aug. 13, 2008, the stock was flat in evening trading after swinging to a loss though topping with sales. Shares fell 12.4% the next day.

On May 13, 2008, PLAB gained 2.2% in after-hours trading after reporting sales up over year ago levels and a loss. It lost that gain the next day, declining 8.7% by the close on May 14.

On Feb. 13, 2008, PLAB was flat in evening trading after posting Q1 sales that were down from year ago levels and swinging to a loss. It turned south the following day, closing the Feb. 14 regular session down 4%.

On Dec. 4, 2007, PLAB tumbled 12.6% in after-hours action after posting a year-over-year decline in Q4 results. Much of that downside was cut back the next day as PLAB ended the Dec. 5 regular session off 0.7%.

On Aug. 15, 2007, PLAB dipped 0.3% in evening activity despite topping Q3 estimates. Shares regained their footing and closed up 2.9% in the next regular session.

On May 15, 2007, PLAB dropped 1.6% in night trading after missing Q2 sales estimates. Shares extended their losses the next day to end the regular session down 4.2%.

On Feb. 14, 2007, the stock fell 2.2% after the company missed with Q1 estimates. Shares fell 4.6% the next day.

On December 5, 2006, PLAB gained 4.6% in after hours when the company topped Q4 and FY estimates. The shares couldn't hold all the gains and closed the next day session up only 2.5%.

On Aug. 15, 2006, shares fell 4.2% in the evening session after the company reported revenue in line. The stock rebounded to put up a 4.3% gain the next day.

On May 16, 2006, shares firmed 3.8% in the evening hours after the company reported Q2 revenue above expectations. The stock reversed to trade down 2.9% the next day.

On Feb. 14, 2006, shares advanced 9.2% in the night session after the company reported ahead of the Street. The gain was trimmed to 1.3% the next day.

On Dec. 6, 2005, PLAB shares gained 1.3% after it reported Q4 sales of $111.8 million, about in line with the Street. Net income was $0.19 per share, vs. the FC mean of $0.17 per share. The gains faded by the next day and shares closed down 2.6%.

No data are available for the Aug. 16, 2005, results.

On May 17, 2005, PLAB climbed 8.6% after reporting higher-than-expected Q2 results. It soared 25.2% in the May 18 regular session.

On Dec. 7, 2004, PLAB slid 3.5% after hours after missing Q1 Street targets. It widened that loss in the Dec. 8 regular session, falling 7.8%.

On August 17, 2004, PLAB gained 4.9% after posting in-line Q3 revenue and EPS that beat the Street forecast by 1 cent. It found more upside in the August 18 regular session, scaling 9% by the close.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.