Ask Question
BusinessBusiness
21 October, 14:53

Company X is expected to earn $2.25 per share this quarter. Last quarter they earned $2.50 per share, and a year ago their earnings were $3.00 per share. Before the market opened this morning, they announced earnings of $2.30 per share. If there is no other news about this stock, and leaving out what the market as a whole is expected to do today, what should happen to the price of the stock when the market opens.

+3
Answers (1)
  1. 21 October, 15:20
    0
    Price of the stock will go up

    Explanation:

    In order to predict future movements of stock prices, analysts use reported quarterly earnings, usually in the forms of earnings per share. However, analyst's estimation is only opinion, that may differ from what would really happen. If company's earnings exceed their own estimations, as in this case, we could expect stock value to rise. However, in the case where actual earnings are a bit lower than projected ones, the price of the stock will drop.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Company X is expected to earn $2.25 per share this quarter. Last quarter they earned $2.50 per share, and a year ago their earnings were ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
What cultural factors affect business activities in Vietnam?
Answers (1)
A deduction from adjusted gross income for yourself, your spouse, and qualified dependents is: A. the standard deduction. B. a tax credit. C. an itemized deduction. D. an exemption.
Answers (1)
A firm is most likely to pursue a global standardization strategy when
Answers (1)
Skippy loves peanut butter. Skippy reads on the internet that 75 percent of the peanut crop in the South has been wiped out by drought, and that this will cause the price of peanuts to more than double by the end of the year. As a result, a.
Answers (1)
Does anyone know anything about accounting?
Answers (1)
New Questions in Business
If you were using a simple exponential smoothing forecast model (alpha value equal to 0.30) that generated a forecast of 25.
Answers (1)
McMurphy Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows: 36) Direct materials Direct labor Variable factory overhead Fixed
Answers (1)
The basic financial statements include all of the following except: Select one: a. Management's Discussion & Analysis b. Fund-basis financial statements c. Notes to the financial statements d. Government-wide statements e.
Answers (1)
The whole idea behind mass production was to: a. produce goods of the highest possible quality. b. give producers the maximum flexibility to respond to customer preferences. c. make large quantities of a limited variety of products at very low cost.
Answers (1)
Provenzano Corporation manufactures two products: Product B56Z and Product D32N. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools.
Answers (1)
Home » Business » Company X is expected to earn $2.25 per share this quarter. Last quarter they earned $2.50 per share, and a year ago their earnings were $3.00 per share. Before the market opened this morning, they announced earnings of $2.30 per share.
Sign Up Forgot Password?