Companies that perform better than expectations see their stock prices rise and companies that miss them suffer. But this behaviour does not always hold.
Sales and profits forecasts from City analysts play an important role in determining share prices. These estimates are available to professional investors via specialist electronic databases offered by Bloomberg, Refinitiv and others. As a rule, companies that perform better than expectations see their stock prices rise and companies that miss them suffer. On Wednesday Siemens, the €126bn German industrial conglomerate, lifted its sales and profits outlook for the fiscal year ending in September 2023. It now expects to make earnings...