Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jjkool_01]

ERES:Short 8.40, earnings after close. Warned. This statement below tells me to short it as they will guide lower for the year. I like the company's future but playing the anticipated swing. It fell to 6.83 on the announcement from 8.55.

'Due to the relatively fixed nature of the operating expenses, the percentage impact on earnings per share will be greater than on revenue. Due to these results, the new management is currently reassessing prior full year 2006 guidance and plans to provide an update in connection with the second quarter conference call.'