A company can post a great result, but if analysts have expected...

A company can post a great result, but if analysts have expected an even greater result, they may then have to revise down price targets, and not be as willing to pay as much for the stock as they were the day before when they were expecting the even better result.

hence the stock falls. all pretty simple to understand is it not?

for long term holders though not a great concern.


The Sydney-based company's earnings in the six months ended Dec. 31 rose to a record A$136.5 million, from A$113.3 million a year earlier, as sales gained 28% to A$1.44 billion, from A$1.13 billion.

Sonic made more than A$1 billion in purchases in the past four years to expand overseas and maintain profit growth as it was restricted by antitrust concerns in its home market.

Credit Suisse tipped Sonic would post net profit of A$149 million, while UBS forecast A$151 million and Goldman Sachs JBWere and JPMorgan both estimated A$138.6 million. The four estimates average A$144.3 million.