The price Woolworths pays for perfection
Woolworths posted a massive 11 per cent improvement in its supermarkets in the first half, but its share price tumbled immediately by 3 per cent.
Coles-owner Wesfarmers announced this week half-year earnings of its supermarkets business fell 14 per cent, and its share price bounced 3.2 per cent.
Even after taking into account all of Woolworths and Wesfarmers’ other business units, the former was a demonstrably better result.
Share prices can move in what seem to be mysterious ways.
But when it comes to the share price response to earnings, the expectations can be more important than results and so can any commentaries on earnings outlook. Sydney Morning Herald – Read more…