Now, you may have noticed something strange happen during this earnings season. It occurs just about every quarter, but it was just a little more pronounced than usual this time.
A stock might miss analyst estimates, but as long as management provided positive guidance, it was rewarded.
On the other hand, we’ve seen some stocks smash estimates only to get shot by investors.
So today, I’ll share four reasons why a stock can suffer an initial drop even though it reported solid earnings numbers.
This post originally appeared at InvestorPlace.