Question on price trend vs earning warnings

Discussion in 'Stocks' started by boroangel, Sep 29, 2010.

  1. boroangel


    Hi all,

    I have a question here, hope to get some advice and feedback here.

    When a company issues a warning on earnings and profit for a quarter, 1 month ahead prior to the release of the official figures and the stock price started to take a substantial hit after this warning was released.

    Come the day of the actual announcement on the quarter earnings, if they really do fall short of estimates, will the previous warning already been factored into the price and no much downside is expected, or will we see more drastic drops?

    Anyone has experience noticing such trends?