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Hmm, you'd think this would make the stock go down (today), but it hasn't yet.
by tekism 9y ago
Hmm, you'd think this would make the stock go down (today), but it hasn't yet.
- sokoloff 9y agoConfounding news. Earnings were good; this news is negative. > The shares rose less than 1 percent to $16.97 ahead of regular trading in New York, erasing a gain of as much as 5.8 percent that followed the announcement of the company’s fourth-quarter earnings.
- jnordwick 9y agoHuh? GE missed eps estimates for 4q2017 ($0.29 vs $0.27). It had positive guidance for 2018, but not many believe them.
- dagw 9y agoIf everybody already assumed that they would miss estimates then announcing that you missed estimates won't affect the share price.
- freehunter 9y agoIf everyone already assumed they'd miss analyst estimates, then what's the point of an analyst?
- brixon 9y agoThe company's estimates and outside analyst's estimates are two different things. When they agree then I think the price gets reflected quickly, when they disagree it opens it up for more volatility.
- AznHisoka 9y agoDaily stock movements are practically random. Stocks go down even if earnings beat estimates.
- dagw 9y agoStocks go down even if earnings beat estimates. Only if you beat estimates by less than people had estimated you would.
- AznHisoka 9y agohttps://investorplace.com/2017/11/workday-inc-wday/#.WmioNOi7_Sw https://investorplace.com/2017/11/workday-inc-wday/#.WmioNOi... Workday beated estimates by over 50%, yet shares fell. I can give a lot more examples... Lots of investors also sell when earnings beat estimates because they think they'll be selling high, etc. Point is there are tons of factors and it is way too simplistic to say beating earnings = price increase on that day.
- dagw 9y agoThere are two estimates you need to consider. The official estimate and the 'secret' estimate that investors really think you should beat. Although most people focus on the first one, it's only the second one that really counts. Point is there are tons of factors and it is way too simplistic to say beating earnings = price increase on that day. Absolutely agree.
- mikestew 9y agoWorkday beated estimates by over 50%, yet shares fell. I can give a lot more examples... Par for the course for AAPL at earnings time for many years, not so much recently. Beat earnings, but didn’t beat the “whisper number”.
- jonbarker 9y agoThis really depends on how accurate analyst estimates have been in the recent past. Consistently beating estimates will produce less gains over time. Similarly, consistently missing earnings will eventually cause less price damage over the mid run (of course it will probably produce bankruptcy in the long run). Confounding this picture in this case is that the market is trying to price a bunch of spinoffs which have been announced or rumored.
- 9y ago
- jnordwick 9y agoOld news. GE has been in free fall for a year now (down almost 50% over the last year and worst djia performer). Last week a warning came out and it fell then. It was pretty well anticipated that news relating to the insurance business was coming out this week. I guess the news is about inline with what was expected. Generally, by the time news like this hits the papers, everybody already knows about it, unless it is some secretive expose. This wasnt a secret.
- jonknee 9y agoIt's down over 1% at the moment, but with it already so beaten down there's a limit to the impact of more bad news.
- mathattack 9y agoMaybe the news was already baked in? Seems like a common underfunded long term liability issue that could be forseen in their financial statements. (Any company with long dated fixed liabilities and unrealistic investment return assumptions can fall into this)
- ghostcluster 9y agoStrong business and margins in the aircraft engine market, with a good future outlook in growth of the airline industry