You learned that the company has reported increases in earnings per share

You learned that the company has reported increases in earnings per share
for each of the past 25 quarters however, earnings during the current
quarter have leveled off and may decline.

PROBLEM: Management's philosophy and operating style, as well as their commitment to integrity and ethical values, can be tested when a company faces declining earnings. When earnings per share decrease or when they do not meet expectations, company stock can take a dive, sometimes a significant one. As a result, a company may try and avoid earnings decreases when possible. The problem comes when management uses questionable or even illegal means to prop up their earnings.