Cisco Consistently Adds to Earnings-Driven After-Hours Trade in Next Day's Regular Session

Cisco Systems (CSCO) is slated to report its Q3 results after the bell today, and analysts polled by Capital IQ are expecting the company to report a profit of $0.82 per share on revenue of $12.6 billion.

The stock favors widening in its session-to-session performance on earnings announcements, posting wider next-day closing levels following 47 out of its last 83 extended-hours earnings events, or 57% of the time.

Looking deeper into the performance data, shorts should note that CSCO has seen a negative post-bell earnings-driven trade in 47 of the 83 quarters we've tracked, and in 27 of those downside evening moves, or 57% of the time, the stock has followed that trade with a more aggressive negative run in the next day's regular session.

On the long side, CSCO adds to its gains between the sessions, recording 36 earnings-driven upside evening moves in the 83 quarters we've followed - widening those gains 20 times the next day, recording 15 events where the gains were cut back or reversed the following day, and one event where it held the same gain through to the next day's close.