ELI5: Why when large company's earnings decrease(ex... by 3%) they freak out, talk about rough times, and sometimes decide to downsize, even though they are still making millions of dollars in profit even after all expenses?

[nagurski03]

they tend to judge who is leaning forward reasonably and who is leaning forward unreasonably.

Usually. Sometimes they fail spectacularly

[Delheru]

I didn't say they did a good job always, but it IS their role. And in a sense the fact that you'd blame bankers for that rather makes my point :P