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Have you heard of a stock going up after missing the earnings estimate?

Posted on 10/21/14 at 2:14 pm
Posted by Jim Rockford
Member since May 2011
98145 posts
Posted on 10/21/14 at 2:14 pm
BXS missed its estimate yesterday and is up 4% today. Granted it's an up day for the market overall, but BXS is up way more than its peers. That has to be pretty rare?
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 10/21/14 at 2:16 pm to
About the only time I've seen it happen is when a company misses on the bottom line estimate but beats it on the top line (revenue) estimate. Or maybe when the company simultaneously announces an increase in its dividend.
Posted by roguetiger15
Member since Jan 2013
16151 posts
Posted on 10/21/14 at 2:36 pm to
sometimes a miss in earnings can signal a change in the company's board or executive level. if investors see a change as a positive, they'll jump in.
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 10/21/14 at 4:33 pm to
If they adjusted forward guidance up a lot, that would make sense.
Posted by BennyAndTheInkJets
Middle of a layover
Member since Nov 2010
5593 posts
Posted on 10/21/14 at 4:56 pm to
THF already posted but 90% of the time when a stock bounces following earnings misses, its because of an increase to forward guidance (or initiating forward guidance above market expectations).

BXS is rallying from a much larger than expected share buy-back.
This post was edited on 10/21/14 at 5:01 pm
Posted by drsung
Member since Aug 2004
197 posts
Posted on 10/21/14 at 5:53 pm to
It happened last week with YUM. Missed on top and bottom but stock was up modestly the next day.
Posted by LSUneaux
NOLA
Member since Mar 2014
4486 posts
Posted on 10/21/14 at 8:15 pm to
Really interesting stuff I've never really paid attention to. Clearly it didn't work for IBM.

This is what makes Monday-Fridays great. I like my job, but it's still work. The market is great workday entertainment. You get news early in the morning, and in the final hours of the workday after the market closes.
Posted by Jim Rockford
Member since May 2011
98145 posts
Posted on 10/23/14 at 2:47 pm to
Bounced around a bit yesterday and closed about even. Up another 2.5% today after declaring the same dividend as last quarter.
Posted by 632627
LA
Member since Dec 2011
12726 posts
Posted on 10/23/14 at 10:11 pm to
quote:

sometimes a miss in earnings can signal a change in the company's board or executive level. if investors see a change as a positive, they'll jump in.


mcd had horrible earnings but the stock barely moved, because of this reason.

edit- i don't think any changes were announced, but i believe there is speculation
This post was edited on 10/23/14 at 10:12 pm
Posted by Jim Rockford
Member since May 2011
98145 posts
Posted on 10/28/14 at 2:26 pm to
So BXS is up ~15% after missing earnings last week
Posted by TheIndulger
Member since Sep 2011
19239 posts
Posted on 10/28/14 at 2:35 pm to
FCX went down today after beating earnings estimates..

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