STOCKWATCH: Q3 symptomology – low quality earning and deflection
This article was originally published in Scrip
Executive Summary
Business school students are taught that good management teams do two things. They grow sales through price and volume increases and they improve efficiency by decreasing the cost base. In the second week of the Q3 earnings season, the cost-cutting lesson appears to have been learned better than the sales lesson by many pharma and biotech management teams.