Everyone wants their earnings to “beat” expectations.
So much can you expect your stock to move higher on such a beat?
This matrices from UBS is helpful.
In Q4, when revenue and earnings beat expectations, stocks went up on average 2.07%. When earnings beat, but revenue missed, stocks fell on average 2.48%.
So when you watch your tickets come in, it almost certainly behooves you to pay attention to the top end. Without that, there’s little hope of a positive news.
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