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Why Were So Many Earnings Beats This Season Followed by Share Price Drops?

DATE POSTED:October 12, 2017

In this Answers, Answers segment of this episode of Motley Fool Answers, Alison Southwick, Robert Brokamp and guest Morgan Housel (a former Fool now at the private equity VC firm The Collaborative Fund) consider the earnings expectations game: No company wants to merely meet expectations, and most investors want quarterly results that beat expectations. But if you expect to exceed expectations, what are your expectations, really? And how should those relative numbers guide Foolish investors' actions?

A full transcript follows the video.

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