GE Historically Favors the Short Trade off Earnings-Driven Pre-Market Moves

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General Electric ( GE ) is due to report its Q4 results in the pre-market on Friday, Jan. 17. Analysts polled by Capital IQ expect the company to report a profit of $0.53 per share on revenue of $40.20 billion.

After reporting earnings results in the pre-market, GE has reversed 14 times between the sessions, widened 17 times and stayed flat once in the past eight years.

Looking deeper into the performance data, GE favors the short side. GE has seen an earnings-driven pre-market decline in 19 of the 32 quarters we've tracked. The issue has followed 13 of those downside moves with more aggressive declines in the ensuing regular session, or about 68% of the time.

GE has recorded an earnings-driven pre-market gain in 13 of the 32 quarters we've tracked. The stock has only added to its upside four times in the following regular session, narrowing its pre-bell advance eight times, or 67% of the time, and recording one event where its pre-market gain was even with the following regular session rise.

On Oct. 18, 2013, GE advanced 2.1% in night trade after meeting Q3 EPS estimates and coming in just shy of the revenue forecast. The stock moved higher in the regular session, ending the day up 3.5%.

On July 19, 2013, GE gained 2% in after-hours trade after topping Q2 earnings expectations. The stock jumped higher in that day's regular session, ending up 4.6%.

On April 19, 2013, GE declined 3.2% in pre-bell action despite topping Q1 expectations. The stock moved deeper south in that day's regular session, closing down 4%.

On Jan. 20, 2012, GE declined 1.7% in pre-market trade after reporting a year-over-year decline in Q4 results. The stock reversed direction in that day's regular session, ending at the flatline.

On Oct. 21, 2011, GE declined 0.9% in pre-market trade after meeting Q3 earnings expectations and beating on revenue. The stock added to its negative trade in that day's regular session, ending down 1.9%.

On July 22, 2011, GE gained 1.5% in pre-bell action after beating Q2 expectations. The stock reversed direction in that day's regular session, ending down 0.6%.

On April 21, 2011, GE advanced 1.9% in pre-market action after beating Q1 expectations. The stock lost that gain in the follow-on regular session, ending down 2.2%.

On Jan. 21, 2011, the stock gained 4.9% after a Q4 beat. Shares rose a more robust 7.1% the next day.

On Oct. 15, 2010, GE shed 2% in pre-market trade missing revenue expectations and beating on earnings. The stock headed deeper in the red in that day's regular session, closing down 5%.

On July 16, 2010, GE declined 1.5% in pre-bell action despite beating Q2 expectations. The stock continued heading lower in the regular session, ending down 4.6%.

On April 16, 2010, GE edged 0.1% lower in pre-market trade despite beating Q1 earnings expectations. It headed deeper in the red in that day's regular session, closing down 2.7%.

On Jan. 22, 2010, GE firmed 3.1% in pre-market action after the company reported Q4 results that topped expectations. It lost the bulk of its early gains in that day's regular session, closing with a 0.5% rise.

On Oct. 16, 2009, GE declined 3.1% in pre-market trade after beating earnings expectations but missing on revenue. The stock turned deeper in the red in that day's regular session, declining 4.2% by the closing bell.

In pre-market trading on July 17, 2009, the stock fell 3.4% after GE beat with earnings but missed with revenue. The loss expanded to 6% during regular trading.

On April 17, 2009, the stock gained 1.3% after beating with earnings but missing with revenue. Shares closed up a slimmer 0.9% during regular trading.

On Jan. 23, 2009, shares fell 6.1% in the pre-market session after the company reported earnings in line but missed with revenue. The loss fattened to 10.7% in regular trading later that day.

On Oct. 10, 2008, GE shed 1.5% in pre-market trade after posting Q3 results in line with Street estimates. The stock recorded a sharp about-face in the regular session, soaring to a 13.1% gain in the Oct. 10 regular session.

On July 11, 2008, GE declined 0.5% in pre-market trade after meeting earnings expectations, beating on revenue, and backing its fiscal year view. The stock turned positive in the following regular session, eking just higher, up 0.07% by the closing bell.

On April 11, 2008, GE tumbled 11.5% in pre-market trade after missing Q1 expectations and setting its guidance below Street estimates. It added to its downside in the following regular session, losing 12.8% by the closing bell.

On Jan. 18, 2008, GE advanced 2.3% in pre-market trade after meeting Q4 expectations and maintaining its 2008 guidance largely in line with the Street view. The stock added to its upside in the following regular session, gaining 3.3% by the closing bell.

On Oct. 12, 2007, GE lost 1.5% in pre-market trade after the company met Q3 earnings expectations, beat on sales and guided for its Q4 and full year earnings in line with the Street view. The stock saw its declines reverse slightly during the regular session, closing out that day's trade down 1.3%.

On July 13, 2007, GE advanced 1.6% in pre-market trade after the company beat by a penny on earnings and set forward guidance in line with expectations. It narrowed its upside in that day's regular session, rising 1.2%.

On April 13, 2007, GE gained 1.1% in pre-market activity after reporting quarterly results that matched estimates and setting its outlook in a range that straddled the Street view. The stock saw its upside cut back between the regular session bells as GE ended the day with a 0.5% gain.

On January 19, 2007, GE fell 2% in the pre-market session despite meeting Q4 EPS estimates and topping on sales. It also guided in line with expectations. Shares dipped a bit further in the regular session, ending down 2.7%.

On Oct. 13, 2006, GE slipped 0.9% in pre-market action after the company posted in-line earnings, beat on revenue and issued guidance that straddled Street expectations. The downside was trimmed to a 0.6% decline between the bells.

On July 14, 2006, GE declined 1.1% in pre-market trade after the company matched the Street view for its Q2 and maintained its guidance in a range that straddled the then-current expectations. The stock added modestly to its downside in the regular session, closing down 1.7%.

On April 13, 2006, GE shed 0.8% in pre-market trade after the company beat on Q1 revenue, matched on EPS, and guided in-line with expectations for its Q2 and full year. Sellers added to the pressure in that day's regular session, sending GE down 1.6% by the closing bell.

On Jan. 20, 2006, GE declined 1.1% in pre-market trade after the company met earnings expectations, came in shy on revenue and guided its forward EPS in line to higher than estimates. The downside firmed deeper in the red in the Jan. 20 regular session, with GE ending the day down 3.7%.

On Oct. 14, 2005, GE advanced 0.9% in pre-market trade after beating on revenue, posting in-line EPS, guiding to mostly match expectations, and raising its buyback program. It stayed tight to that upside move in the regular session and ended the day up the same 0.9%.

On July 15, 2005 GE slimmed down 0.9% in pre-market trade after matching Q2 estimates and raising its full year EPS to the high end of its previous outlook. The stock cut back its modest downside between the bells, losing a mere 0.2% by the July 15 regular session close.

On April 15, 2005 GE edged up 0.9% in premarket trade after topping Street expectations. The stock narrowed its upside slightly between the bells, eking out a 0.7% rise by the April 15 regular session close.

On Jan. 21, 2005 GE advanced 0.9% in premarket trade after the company reported results ahead of Street estimates. Buyers cleared out of the issue in regular session play, allowing the stock to end bell-to-bell action down 0.6%.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: GE

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