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An equity analyst predicts a positive earnings surprise for a company but observes that the share price does not increase after the results are published.
An equity analyst predicts a positive earnings surprise for a
company but observes that the share price does not
increase after the results are published. What might be the
reason for this discrepancy?
QEarnings surprises always correlate directly with consensus estimates.
Other factors like company guidance play arole in share price movements,
and abinings surprise of not guarante a specific reaction.
Share price movements are solely dependent on negative camings
surprises and not effected by positive surprises.
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