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Most people read earnings reports completely wrong.
Two things matter. Everything else is noise.
What most people focus on:
"They beat earnings."
Beat against what? Analyst expectations.
Apple beats the $1.50 expectation with $1.53.
But the quarter before was $2.18.
3 quarters in a row going down. Nobody mentions that.
What actually matters:
1. Is EPS growing quarter over quarter?
Not beating analyst guesses. Actually growing vs prior quarters.
2. What is the guidance?
Markets are 6-12 months forward looking.
Good quarter with bad guidance = stock falls.
Every time.
Always get your information from the primary source.
Listen to every earnings call on companies you own.
The CEO tone tells you everything.