India’s leading software company, Infosys announced its September quarter result yesterday. The company reported an 8% growth in sales during the quarter, as compared to the previous quarter ended July 2011. Its profit growth stood at 11%.
The stock clocked gains of around 7% after these result was announced. Now, if you think the good performance from the company was the reason for the stock to have performed so well yesterday, you are missing the point.
The key reason the stock rose so sharply was not Infosys’s September quarter performance, but the fact that the management raised its ‘forward guidance’ or its ‘earnings expectations’ for the coming quarters.
[Read more…] about Infosys and the Funny Stock Market Pastime Called ‘Expectations’