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Southern airline inc.announced that its net income in the first quarter jumped percent to $100 million...

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Finance

Southern airline inc.announced that its net income in the firstquarter jumped percent to $100 million as number of passengerclimbed. The airline also booked of $40 million from the sales of 2aircraft. According to the survey of 6 analysts average estimate ofthe first quarter net income for the airline was $200 miliion.After earning announcement what would be the possible movement ofthe company's stock. Please explain with any financial concepts andtheories?

Answer & Explanation Solved by verified expert
3.5 Ratings (297 Votes)
The stock price of the Southern Airline Inc would go down There are two reasons for this analysis 1 The net income for the quarter missed the analyst estimates by a huge margin of 100    See Answer
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