Earnings Reaction Framework: Beyond Beat / Miss

Price action ≠ fundamental quality. A simple framework reduces headline bias.

Common patterns

Print Price Possible read
Beat + sell Weak guide / too-high bar
Miss + rally Pessimism priced / guide improves
Thin after-hours Wait for the next open

After the print

  1. Jump from the calendar
  2. Open the fresh 8-K / 10-Q on filings
  3. Check sector tape on the desk

Rules

  • Read guidance language before calling a “beat”
  • One-offs often distort EPS

Disclaimer: Educational only — not investment advice.