usually it extremely is using fact the solid income weren't almost as good as estimated. investors - the enormous companies, people who flow the standard public of shares - hire especially mathematical quantitative fashions to estimate what the "authentic" cost of a inventory ought to get carry of all tips available. usually those estimates come across a consensus, particularly on the greater useful-accompanied shares (blue chips, etc). So the consensus could be that YYZ is estimated to have income in keeping with share (EPS) of $one million.seventy 4, and the cost of the inventory would be bid up or bought down on the inspiration of that consensus. If the income checklist is presented in at $one million.60, it extremely is nice information despite the fact that it extremely is wanting what became estimated, and so companies that carry the inventory will sell correspondingly using fact it extremely is not extremely the overall performance they have been hoping for. it is likewise a count of the common of the income. particular, KMJ had extensive earnings this quarter yet did so from advertising off a super form of components, meaning that it is not at risk of be as rewarding in coming quarters. it is likewise conceivable that income met forecast yet different information overshadows it - for occasion if BP had introduced stellar income 2 weeks after the Deep Horizon explosion, and on a similar time introduced that they estimated to take a super loss here quarter, the destiny loss might probable outweigh the present income. Or it extremely is that a inventory cuts its dividend (meaning much less money flow from possessing it, for this reason driving down the cost if the dividend became seen lifelike). So it extremely is not merely the income, however the completed photograph of the corporation that's taken under consideration.