Seeking Alpha
Profile| Send Message|
( followers)  

Level 3 Communications (NYSE:LVLT) is expected to report its Q2 results ahead of the opening bell Wednesday, July 27, and analysts polled by Thomson Reuters expect the company to post a loss of $0.09 per share on revenue of $937 million.

Within the data pool we've accumulated on LVLT, we've found the issue is favoring a widening pattern between the sessions. The stock has put up 14 wider moves, 10 narrowing moves and one trade where the stock did not hit any extended-hours matches. In the near-term, LVLT is mixed, widening twice and narrowing twice over the past year.

Looking deeper into the data, shorts will note that LVLT has responded to earnings news with a decline in 14 instances, extending that move 12 times. Of its 10 gains, shares extended that move only three times.

In the pre-market session of May 3, 2011, the stock rose 4.2% after LVLT beat Q1 earnings estimates. Investors cut that gain considerably and shares closed regular trading up a thin 0.6%.

On Feb. 2, 2011, LVLT slumped 6.9% in pre-bell action after beating Q4 expectations. The stock saw its downside trimmed slightly in that day's regular session, ending off 5%.

On Oct. 28, 2010, LVLT gained 1.7% in pre-market trading after reporting Q3 results ahead of expectations. The stock continued its advance in that day's regular session, closing up 4%.

On July 27, 2010, the stock fell 4.1% after a revenue miss. Shares dropped 8.3% in the following regular session.

On May 6, 2010, LVLT shed 4.9% in pre-bell trading after meeting Q1 loss estimates and beating on sales. The stock slumped lower in that day's regular session, ending down 11.1%.

On Feb. 10, 2010, LVLT declined 2.1% in pre-market trading after beating revenue expectations but missing on earnings. The stock headed lower in the following regular session, closing down 7.9%.

On Oct. 28, 2009, the stock fell 5.8% during evening trading after reporting a loss in line with the Street view and missing on revenue. The decline more than doubled the next day when shares closed down 12.5%.

On July 30, 2009, LVLT tumbled 14.8% in pre-market trading after missing estimates and lowering its guidance. The stock ended the July 30 regular session with a slightly narrower loss, down 12.3%.

On April 28, 2009, the stock fell 8.8% during the pre-market session after a revenue miss and announced job cuts. Shares dropped 14.1% during regular trading.

On Feb. 11, 2009, LVLT jumped 10% in pre-bell trading after topping earnings expectations. The stock reversed sharply in the regular session, ending down a hefty 15%.

On Oct. 23, 2008, LVLT advanced 10.5% in pre-market trading after beating Q3 expectations. The stock failed to hold the gain in that day's regular session, tumbling 39.4% by the closing bell.

On July 24, 2008, LVLT gained 10% in pre-bell trading after beating Q2 expectations. The stock saw that gain evaporate in the regular session as LVLT ended the day down 8.4%.

On April 23, 2008, LVLT soared 19.4% in pre-market trading after Q1 revenue topped expectations. The stock saw added gains in that day's regular session, ending up 22.7%.

On Feb. 7, 2008, LVLT gained 1.9% in pre-market trading after reporting a narrower year-over-year loss and higher revenue. It lost the upside in the Feb. 7 regular session, ending the day down 4.4%.

On Oct. 23, 2007, LVLT tumbled 13.9% in pre-market trading despite posting better-than-expected results. The stock hurtled even lower in the following regular session, losing 24% by the Oct. 23 closing bell.

On July 26, 2007, LVLT fell 6.3% in the pre-market session after reporting. The loss fattened to 12% during regular trading later that day.

On April 26, 2007, LVLT declined 4.2% in pre-market trading after just beating on Q1 revenue and setting its Q2 revenue below Street estimates. It tumbled further in that day's regular session, losing 7.2%.

On Feb. 8, 2007, LVLT declined 2.7% in pre-market trading after the company reported results above estimates and provided in-line guidance, but it also announced plans to sell notes. The stock headed further south in the regular session, losing 7.3% by the closing bell.

On Oct. 24, 2006, LVLT shed 6.7% in pre-market trading after the company reported revenue below expectations and set a sales view south of the then-current Street estimates. The decline was cut back in that day's regular session, with the stock ending down a more modest 2%.

On July 25, 2006, LVLT declined 1.8% in pre-market trading despite reporting better-than-expected revenue results. Sellers added to the downside in that day's regular session, with LVLT diving 8.2% by the closing bell.

On April 25, 2006, LVLT jumped 11.8% in pre-bell trading after the company edged out Q1 expectations. The stock stayed to the upside in the following regular session, but lost a portion of its rise, closing up 8.1%.

On Feb. 7, 2006, LVLT failed to see a pre-market trade after the company reported Q4 results ahead of estimates. The stock slipped 3.5% between the bells.

LVLT advanced 1.7% in the Oct. 20, 2005, pre-market after the company beat quarterly Street expectations. The stock continued its upside flow through the regular session, rising 6.6%.

On July 21, 2005, LVLT beat Street expectations but the stock nonetheless slipped 3.6% in pre-market trade. It added to its downside between the bells, losing 6.3% in the regular session.

On April 26, 2005, LVLT advanced 1.6% in pre-market trade following better-than-expected results. This upside failed to hold through the regular session as LVLT ended the day down 1.1%.

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

Source: Level 3 Post-Earnings Moves Showing Favorable Pattern for Shorts

Check out Seeking Alpha’s new Earnings Center »