The core principle of trading after an earnings report is to react to new information, not to speculate on it beforehand. The market's reaction is driven by several factors beyond just beating or missing an EPS (Earnings Per Share) estimate. These include:

Guidance: The company's future outlook is often more important than past performance. If a company beats on current earnings but provides weak guidance for the next quarter  or year, the stock can sell off. This is a common reason for a "beat and crash" scenario.

Revenue vs. Profit: How the company makes its money matters. A company could beat on EPS by cutting costs, but if revenue growth is stagnant or declining, it may be a bad sign for the long term.

Analyst Estimates and Whisper Numbers: The market reacts to surprises. If a company beats the "official" consensus estimate but falls short of an unofficial "whisper number" that traders were anticipating, the stock may not rally as expected.

Conference Call Commentary: The company's management often provides crucial color on the earnings call. Details about a new product launch, a new market entry, or competitive pressures can have a significant impact on the stock's direction. @MillionaireTiger @TigerStars @TigerClub @TigerEvents