Explain how the market price can decrease

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Global importers predicted that its earning per share for the year would be $1.86. today, the firm released its earnings report and earnings per share turned out to be $1.99 per share. in response to the earnings report, the price per share of global importers stocks declined by 3.4 percent. Explain how the market price can decrease when the announced earnings were higher than the firm predicted?

Reference no: EM13304058

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