From Nasdaq:

When asked about the stock market’s direction, the most honest answer is usually “up and down.” But why do stocks behave “illogically” after earnings? General Electric beat earnings expectations but saw their stock drop due to disappointing forward guidance. Trading and investing are speculative and always looking forward, making forward guidance a major factor in stock reactions.

Analysts consistently underestimate the job done by GE CEO Larry Culp, with the stock bouncing back after a closer analysis of Q4 results. GE’s turnaround is a quiet success story, with consistent better-than-expected profits and margin improvement overshadowed by the company’s usual disappointing guidance. This morning’s calm analysis is showing promise for a slight recovery.



Read more: General Electric (GE) Earnings: Performance Matters More Than Projections