Why the market cheers mediocre results
Bad earnings are still bad, even if they were expected.
Mattel (MAT) reported Tuesday that profit rose 20% to $96.2 million, or 28 cents a share, as price increases offset rising costs for raw materials even though revenue was little changed at $1.16 billion. Goldman Sachs' (GS) second-quarter net income plunged 12% to $962 million, or $1.78 per share. Revenue at the New York investment bank fell 9% to $6.63 billion. Coca-Cola's (KO) quarterly profit barely budged and revenue rose 2.7% to $13.09 billion.
Yet these are all Wall Street "winners."
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
4 analysts downgrade the stock the day after a disappointing quarterly report.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.