This might sound like a dumb question (I'm relatively new to the stock market). I know this doesn't happen, but why doesn't the stock price directly move in accordance to the earnings reported vs what analysts estimated?
For example, company XYZ releases their earnings report and it's an actual EPS of 11 vs. an expected EPS of 10 by Wall Street. Shouldn't their stock appreciate by 10% as soon as this happens?
I sometimes see companies beat earnings expectations yet they depreciate a bit. Why does this happen?