Say company X issues guidance of $1.34/share
Analysts expect $1.40/share.
Company X releases earnings of $1.45/share.
Things still tank, because... the "real" expectation was 5% over analyst expectations, which was already over guidance.
Analysts expect $1.40/share.
Company X releases earnings of $1.45/share.
Things still tank, because... the "real" expectation was 5% over analyst expectations, which was already over guidance.