The chart of the week looks at the share price change from two days before to two days after for companies that miss earnings estimates. Meeting these expectations are incredibly important for companies and any misses are usually penalized harshly, even for slight misses. So far this quarter, however, share prices are little changed for those companies that miss estimates after a quarter where misses hit share prices by close to 5% on average. These reactions could come from lower expectations not properly taken into consideration for analysts’ expectations along with expectations that rising inflation would negatively affect business more than expected.

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