I base my purchase decisions on how well the company is doing, and my evaluation of how it will do in the future, and how well its price matches its prospects, rather than whether the company came in two cents above, or two cents below, what the analysts predicted.
While I agree about basing purchase decisions on how well the company is doing, the company should focus on providing “accurate” range of estimates, that may include the low ball, but the upper end of the range should be closer to where they think they will be.
In the end, since it is a no-win scenario with analysts that want to “force” a “negative” headline, it doesn’t matter short term price movements based on missing an analyst estimate. Generally, the price is going to be based on a combination of how a company is doing and how it is projected to do in the near term. The price may fall based on missing a “high-ball” estimate being missed, but it also would have risen based on that same estimate.
What growth and when it ends are key to a current valuation/price. At some point growth will begin to slow. The key to investing is not paying too much for future growth based on historical growth and projected growth estimates.
I don’t think I’m saying anything not already known and understood, and some of this could be in the Knowledgebase posts.
I have enjoyed reading a lot of the information provided here…wish I had found this forum earlier.
JI.