Even after a decline in net earnings per share (EPS), shares of Realty Income Corp. (NYSE: O) are rallying by roughly a point and a half in the pre-market hours the day after they released their quarterly financials. This can be confusing for investors, as some companies perform well on good earnings or rally on bad earnings.
The reason is that it isn’t always EPS that matters the most, especially for a company in the real estate sector like Realty Income.
