Brush Materials (BW) posted a 1Q EPS of $1.12 today before market open. The consensus estimate was only 73 cents. So this company beats the Street's estimate by over 53%. What happens to the price of the stock. It's down over 16% as I am writing this! Can someone please explain how this can happen? Prior to the opening the P/E of the stock was 24 which is slightly high (relative to industry and S&P) but not what I would call excessive. Iâm aware that forward guidance trumps earnings but forward guidance was positive with 2007 sales growth given as 25-35% growth. Again, not too shabby. Obviously, there must be some other valuation model being used by investors to determine the fair value of the stock so even with an EPS of $1.12, this model calculated the new share price to be roughly 16% less than what the stock was previously worth. Can someone explain how this model really works and what investors really look for? Thanks. T.C.