Reconcile lower revenue and lower profits

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The recent microchip shortage is a result of microchip manufacturers lowering production levels at the beginning of the pandemic. Recently automobile companies disclosed that their revenue and profits would decline in the most recent quarter due to the microchip shortage. A stock analyst increased the rating for the automobile sector and individual automobile manufacturers based on this information.

How do you reconcile lower revenue and lower profits with an increase in the automobile ratings by this analyst?

Reference no: EM133070222

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