Denny's Not a Long or Short Favorite in Post-Earnings Trade

| About: Denny's Corporation (DENN)
This article is now exclusive for PRO subscribers.

Denny's (NASDAQ:DENN) is slated to report its Q1 results after the bell tonight, and analysts polled by Thomson Reuters are expecting the company to report profit of $0.07 per share on revenue of $136 million.

DENN is mixed in its next-day share performance between the sessions, putting up six wider and seven reversal moves over the handful of earnings we've tracked. The data we have on DENN is not consecutive.

Looking deeper into the data, longs beware, the stock has responded to evening earnings news with five gains, adding to that move only once. Post-earnings declines took place six times, with wider next-day declines in three of those instances. It's not uncommon for flat evening moves to be followed up by next-day action of more significance, and in both directions, over the limited examples we have.

On Feb. 15, 2011, DENN tumbled 12.2% in after-hours trading after missing Q4 expectations. The stock narrowed its declines sharply the next day, ending the Feb. 16 regular session off 1%.

On Nov. 2, 2010, the stock ended the evening session flat after DENN beat Street estimates with Q3 results. Shares rose 1.8% in the next day's regular session.

On Aug. 3, 2010, DENN gained 1.1% in evening trading despite missing expectations. It saw that gain evaporate the next day, closing the Aug. 4 regular session down 1.5%.

On May 10, 2010, the stock finished evening trading flat after reporting a modest Q1 beat. Shares rose 2.5% the next day.

On Feb. 17, 2010, the stock fell 3.5% in extended-hours trading after swinging to a quarterly profit. Shares rebounded and gained 2.3% the next day.

On Oct. 29, 2009, DENN declined 2.2% in evening trading after missing Q3 revenue expectations. The stock added to its downside the following day, tumbling 17.3% in the Oct. 30 regular session.

On Aug. 4, 2009, the stock fell 1.9% after a Q2 beat and guidance in line with the Street view. The loss was trimmed to 0.4% the following day.

On May 5, 2009, the stock sank 9.9% after missing by a penny with EPS. The loss widened to 11.9% the next day.

On Feb. 13, 2008, DENN closed the evening session flat after beating Q4 revenue expectations but also forecasting a drop in 2008 revenue vs. 2007. The stock was hammered for a 15.3% decline in the Feb. 14 regular session.

On Nov. 1, 2007, DENN jumped 9% during evening trading after the company beat with Q3 results and said it expects to be in the upper range of FY EPS guidance. The gain was slashed to 1.5% by the closing bell the next day.

On July 31, 2007, the stock gained 5% after reporting ahead with sales. The gain was a trimmer 1.5% the next day.

On May 1, 2007, the stock gained 3.4% in evening trading despite a sales miss. The gain was clipped to 1.5% the next day.

On Feb. 15, 2007, DENN dropped 4.1% in night trading after topping Q4 EPS estimates but missing on sales. The shares fell further the next day, ending down 8.3% in the regular session.

On Oct. 26, 2006, DENN firmed 0.9% in evening activity after beating Q3 estimates but offering cautions comments on Q4. Shares, though, edged up slightly more the next day, closing the regular session up 1.6%.

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