Investors Yawn At Earnings Beats In Second Quarter, Punish Stocks With Weak Forward Guidance

During the second quarter, investors had a disjointed focus. Stocks that missed earnings estimates were hard hit, but those that beat Wall Street’s prognostications were not rewarded to the same degree, quantitative analysis from Morgan Stanley shows. When profit margins grew and earnings beats, investors yawned. But woe is the corporate manager who downplays future guidance, as their stock price was hard hit in the second quarter. [schloss] Investors looking ahead of earnings beats to the third quarter and punishing stocks that don’t deliver positive guidance Second quarter earnings are expected to be 12.1% ahead on a year over year…