Global Importers Predicted That Its Earnings Per Share for the Year

question 22

Essay

Global Importers predicted that its earnings per share for the year would be $1.86.Today,the firm released its earnings report and the earnings per share turned out to be $1.99 per share.In response to the earnings report,the price per share of Global Importers stock declined by 3.4 percent.Explain how the market price can decrease when the announced earnings were higher than the firm predicted.

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Definitions:

Lead Times

The time it takes from the initiation of a process until its completion, often used in manufacturing and supply chain management to describe the time from order to delivery.

Supply With Demand

Ensuring that the quantity of goods or services available meets the quantity demanded by consumers.

Forecast Accuracy

The degree to which forecasted values correspond to the actual values observed, often used in planning and inventory management.

Lead Times

The periods required for the completion of processes or activities, especially from the point of order to the delivery of goods.