As we mentioned before individual stocks report their numbers, so it is important to know which ones are being released during the trading day. Reading the numbers can be tricky though so remember the following points when analysing the numbers.

If a headline EPS or profit number beats forecasts – care needs to be taken because equity analysts at big firms may look at hidden factors which could provide bad news for the stock.
Expectations for the quarters ahead are more important than results for the previous quarter – this means that if figures beat forecasts it may shoot up, but then head south once the results are properly dissected. Keep in mind “the first move is the wrong one!”

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