Why don't publicly traded companies lowball quarterly earnings estimates to beat it just about all the time? From my initial (naive) experience with watching stock prices vs quarterly earnings reports - if a company meet or beats estimates, the price goes up, and if they miss the estimate they take a hit.
Are there independent groups who do analysis and give their own estimates for what they believe earnings should be, or are their regulatory requirements that require a duty to provide as accurate forecasting as possible for public companies, or would the market/investors just notice the company using this lowballing strategy?
Appreciate any knowledge on the subject.
Submitted July 15, 2017 at 01:46AM by thinkdead http://ift.tt/2t0UmRI
