Same “beat EPS” print — the entry multiple reroutes its price effect
KEYS
ADI
TGT
Forward multiples, not realized EPS, set the reaction
1
reported results land
realized line: EPS + revenue
2
re-prices on forward
guide + revenue vs guide, not EPS beat
3
entry 70.6x fwd → low tolerance
rich entry · low tolerance
moderate · higher tolerance
KEYS · 70.6x fwd
revenue short
→ de-rate despite EPS beat
ADI · 93x fwd
consensus fully priced
→ Q4 guide make-or-break
TGT · 17.6x fwd
momentum +56% YTD
→ sell-on-news risk
Outcome: the same “beat EPS” news diverges by name
solely because of where the multiple started