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Earnings, or profits, drive stock prices. The market values a company based on its current and anticipated future ability to make money. The market takes the earnings pulse of a company four times per year when quarterly reports are issued. When this information is released in the extended-hours (typically after-hours) it can often be a trend-changing or a trend confirming event because the information is so vital to the market's perception of the vitality of that company.
Chief Financial Officers at these companies have become adept at managing their quarterly earnings numbers to present the company in its most favorable light. They carefully manage the expectations of analysts assigned to follow the company so that when earnings are announced, they do not issue a disappointment. However, many sophisticated individual and institutional traders have their own earnings expectations on stocks they trade and immediately act on those expectations in the after-hours and following day. As a result, the stock's price in the after-hours and regular session following an earnings announcement tends to be significant and often follows a predictable pattern. In fact, many company's stock price histories show predictable movements the day after earnings are issued, repeating the same pattern quarter after quarter, year after year.
MidnightTrader's Earnings Notebook is designed to help the equity trader identify companies that have a consistent pattern of wider or narrowing movement the next day in response to an earnings release the night before. MidnightTrader's proprietary market data analysis of over four years of stock and event specific extended-hours earnings reaction history allows us to communicate relevant historical trading patterns ahead of the next earnings release on over 3,000 public companies. This advance notice of reaction history provides a predictive guide as to how a stock's price is likely to react in the hours and days following its next announcement.
Each Earnings Notebook report provides a recent earnings reaction history on any stocks scheduled to release earnings after the regular close that day. For each company we expect to trade actively following its after-hours earnings report, we provide the stock's relevant reaction history over the previous 4-6 quarters. This reaction history consists of the company's quarterly earnings (EPS, Revenues and guidance) versus First Call expectations and its price reaction in both the after-hours and by the close of the following regular session. The patterns become clear when comparing current day's price reaction to how the stock has reacted in the past to similar news, both after-hours and the following day.
This service provides the end user with a unique and proprietary view into MidnightTrader's historical extended-hours event reaction database. This data behind this service consists of over 20 quarters of stock and event specific information (primarily earnings, though other regular event types are also recorded) coupled with the resulting trading activity; detailing price reactions in the after-hours followed by pre-market and regular session price action. In short, this service provides a proprietary historical pattern recognition tool which allows users to gage how a stock is most likely to trade the following day based on how it has reacted after-hours on similar earnings news in the past. For example, some stocks tend to trade higher after-hours following better than expected quarterly results, only to fall into negative territory the next trading day. This type of historical pattern recognition and reaction data allows MidnightTrader's analysts to provide an excellent predictive tool for the determining how a stock is likely to react tomorrow based on how it has reacted overnight combined with its past event specific reactions.
The Earnings Notebook is designed for qualified individuals, position traders, portfolio managers and hedge funds. This is a premium service from a recognized expert in extended-hours equity market news and analysis. Our proprietary methods of information gathering have allowed us to archive, analyze and disseminate in a timely manner over five years of historical stock and event specific reaction history. The result is a text based research service that provides daily stock specific reports which are issued ahead of the regular close on issues scheduled to report earnings or other regularly scheduled corporate announcements in the after-hours.
Ultimately, the Earnings Notebook is designed to provide qualified individuals and institutions with valuable, easy to understand insight into historical events and data. Subscribers to the Earnings Notebook will gain access to a wealth of predictive information and analytical knowledge not available anywhere else.
The complete Earnings Notebook service is not part of the $29.95/month MidnightTrader subscription and must be subscribed to separately. This service and the data analysis behind it are proprietary to MidnightTrader and provided only to subscribing clients. Individual user price is $500/month . For a live demo and more detailed subscription information, please contact us today.
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Washington, DC 20036 USA
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