CSX usually has no problem beating earnings, they usually beat by 5-10%. EPS is for $1.04 Revenue is for $2.66 Billion Last quarter there EPS came in at $1.07. Revenue came in near $2.7 Billion So you can look at this as being an easy beat for CSX tonight. If you took last quarters earnings and put them against the analysts estimates for this quarter CSX would still beat them. So as you can see the analysts really low ball these estimates as usual. CSX will do at least $1.10 in earnings and at least $2.82 Billion on revenue beating both estimates.
Beating earnings estimates only affects price out of the gate. It's the guidance provided during the conference call that drives the price longer term. And if a stock trades at a very high P/E and the guidance is a bit less than great, price can fall off a cliff even if earnings are a beat.
Agree it usually does move with guidance, last week EQIX fell over 30% to new 52 week lows after warning.
That's the one I was thinking of when I posted. I think their P/E was over 90 when they guided lower.
I wonder do traders from US learn the probability theory? Month by month 70% stocks beat estimation of analysts. Do analysts so stupid or may be they liars?