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# The computer company reported strong second-quarter earnings

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Director
Joined: 10 Sep 2007
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The computer company reported strong second-quarter earnings  [#permalink]

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27 Jul 2008, 21:36
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85% (01:05) correct 15% (01:23) wrong based on 1479 sessions

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The computer company reported strong second-quarter earnings that surpassed Wall Street’s estimates and announced the first in a series of price cuts intended to increase sales further.

(A) The computer company reported strong second-quarter earnings that surpassed Wall Street’s estimates and announced the first in a series of price cuts intended to increase sales further.

(B) The report of the computer company showed strong second-quarter earnings, surpassing Wall Street’s estimates, and they announced the first in a series of price cuts that they intend to increase sales further.

(C) Surpassing Wall Street’s estimates, the report of the computer company showed strong second-quarter earnings, and, for the purpose of increasing sales further, they announced the first in a series of price cuts.

(D) The computer company reported strong second-quarter earnings, while announcing the first in a series of price cuts for the purpose of increasing sales further that surpass Wall Street’s estimates.

(E) The computer company, surpassing Wall Street’s estimates, reported strong second-quarter earnings, while announcing that to increase sales further, there would be the first in a series of price cuts.
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Re: The computer company reported strong second-quarter earnings  [#permalink]

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05 Jul 2013, 23:09
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The computer company reported strong second-quarter earnings that surpassed Wall Street’s estimates and announced the first in a series of price cuts intended to increase sales further.

Meaning the company reported strong second quarter earnings and these earnings surpassed estimates. The company announces a series of prices cuts to increase sales further.

A. The computer company reported strong second-quarter earnings that surpassed Wall Street’s estimates and announced the first in a series of price cuts intended to increase sales further. Correct

B. The report of the computer company showed strong second-quarter earnings, surpassing Wall Street’s estimates, and they announced the first in a series of price cuts that they intend to increase sales further. ( company singular incorrect usage of they)

C. Surpassing Wall Street’s estimates, the report of the computer company showed strong second-quarter earnings, and, for the purpose of increasing sales further, they announced the first in a series of price cuts. ( incorrect modifier surpassing needs to modify earnings, incorrect pronoun)

D. The computer company reported strong second-quarter earnings, while announcing the first in a series of price cuts for the purpose of increasing sales further that surpass Wall Street’s estimates. Incorrect modifier this refers to sales when it needs to refer to earnings.

E. The computer company, surpassing Wall Street’s estimates, reported strong second-quarter earnings, while announcing that to increase sales further, there would be the first in a series of price cuts ( Incorrect modifier needs to modify earnings)

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##### General Discussion
Senior Manager
Joined: 26 Jan 2008
Posts: 260
Re: The computer company reported strong second-quarter earnings  [#permalink]

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27 Jul 2008, 21:49
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abhijit_sen wrote:
The computer company reported strong second-quarter earnings that surpassed Wall Street’s estimates and announced the first in a series of price cuts intended to increase sales further.

A. The computer company reported strong second-quarter earnings that surpassed Wall Street’s estimates and announced the first in a series of price cuts intended to increase sales further.
B. The report of the computer company showed strong second-quarter earnings, surpassing Wall Street’s estimates, and they announced the first in a series of price cuts that they intend to increase sales further.
C. Surpassing Wall Street’s estimates, the report of the computer company showed strong second-quarter earnings, and, for the purpose of increasing sales further, they announced the first in a series of price cuts.
D. The computer company reported strong second-quarter earnings, while announcing the first in a series of price cuts for the purpose of increasing sales further that surpass Wall Street’s estimates.
E. The computer company, surpassing Wall Street’s estimates, reported strong second-quarter earnings, while announcing that to increase sales further, there would be the first in a series of price cuts

+1 - tough one. I'll go with (A) as none of the others seem to fit very well.
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Re: The computer company reported strong second-quarter earnings  [#permalink]

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28 Jul 2008, 05:14
simple A for me. Thankfully I was able to spot the error in the other options quickly, otherwise this one might have been a killer
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Re: The computer company reported strong second-quarter earnings  [#permalink]

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28 Jul 2008, 05:35
A for me. There does not seem to be any error.
Intern
Joined: 16 Jun 2013
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Re: The computer company reported strong second-quarter earnings  [#permalink]

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03 Dec 2013, 00:24
Am i the only one who thinks that the OA is kind of ambiguous?
The OA is
"The computer company reported strong second-quarter earnings that surpassed Wall Street’s estimates and announced the first in a series of price cuts intended to increase sales further."
I know: never think about whats wrong about the OA blabla... Especially since the question was actually a real GMAT question.
But still, I think the "announced the first in a series of price cuts"-part could also be the second part after the "that". So, it would be on one level with "surpassed".
Of course you can read it also in the way it was intended ("reported" and "announced" are on the same level).

I crossed A off because of this ambiguity. Especially because "earnings" can not "announce" something.

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Re: The computer company reported strong second-quarter earnings  [#permalink]

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03 Dec 2013, 00:53
vogelleblanc wrote:
But still, I think the "announced the first in a series of price cuts"-part could also be the second part after the "that". So, it would be on one level with "surpassed".
Of course you can read it also in the way it was intended ("reported" and "announced" are on the same level).

Is this what you are suggesting:
The computer company reported that strong second-quarter earnings surpassed Wall Street’s estimates..
But that is not the intended meaning clearly. May be I am not understanding you clearly.

vogelleblanc wrote:
I crossed A off because of this ambiguity. Especially because "earnings" can not "announce" something.

In A, "earnings" are not "announcing" anything. As you have rightly noted, the parallelism is between "reported" and "announced" (both verbs). So, structure is:

Company reported...and announced...
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Re: The computer company reported strong second-quarter earnings  [#permalink]

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03 Dec 2013, 01:07
... no, what i want to suggest with your first citation is:
It is ambiguous what is meant with the sentence, either
"The computer company reported [...] and announced [...]."
or
"The computer company reported [...] earnings that surpassed [...] and [that] announced [...]."
I know that earnings cannot announce anything
However, the sentence sounds so.
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Re: The computer company reported strong second-quarter earnings  [#permalink]

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04 Dec 2013, 10:11
vogelleblanc wrote:
"The computer company reported [...] earnings that surpassed [...] and [that] announced [...]."

The above interpretation is not possible for two reasons:

a) If “[that] announced” would again mean that “earnings” are announcing (because “that surpassed” would then be parallel to “that announced”). As both of us know , earnings cannot announce anything.

b) The absence of an explicit “that” is intentional, to make it clear that “announced” is parallel with “reported” (and not with “surpassed”).
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Re: The computer company reported strong second-quarter earnings  [#permalink]

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27 Jun 2016, 13:27
A. The computer company reported strong second-quarter earnings that surpassed Wall Street’s estimates and announced the first in a series of price cuts intended to increase sales further...

Here that surpassed wall street's estimates
shouldn't this be estimate ???
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Re: The computer company reported strong second-quarter earnings  [#permalink]

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27 Jun 2016, 13:42
1
No, because there can be many estimates. Wall Street isn't actually one person or entity, but a whole collection of firms, analysts, etc., that can produce estimates. Even one analyst might produce several estimates over time, and the firm's earnings could exceed all of them.

In general, verbs must agree strictly in number with their subjects, so if "estimate" were a verb, we'd see the singular "Wall Street estimates that" or the plural "Wall Street analysts estimate that." However, nouns are under no such restriction. We can say "Dmitry's book" or "Dmitry's books" depending on the intended meaning. I'm very glad I'm not limited to owning one book, because I'm afraid it would have to be the OG, and that would just be sad.
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Re: The computer company reported strong second-quarter earnings  [#permalink]

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27 Jun 2016, 23:12
prakhar39 wrote:
A. The computer company reported strong second-quarter earnings that surpassed Wall Street’s estimates and announced the first in a series of price cuts intended to increase sales further...

Here that surpassed wall street's estimates
shouldn't this be estimate ???

Hi Prakhar, hopefully you noticed that all 5 answer choices use estimates. So, it's a non-issue here.

This is actually important because test-takers should develop that orientation to quickly figure out what really matters in a question. Clearly, estimates/estimate is not a differentiator here.
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Re: The computer company reported strong second-quarter earnings  [#permalink]

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27 Jun 2016, 23:16
EducationAisle wrote:
prakhar39 wrote:
A. The computer company reported strong second-quarter earnings that surpassed Wall Street’s estimates and announced the first in a series of price cuts intended to increase sales further...

Here that surpassed wall street's estimates
shouldn't this be estimate ???

Hi Prakhar, hopefully you noticed that all 5 answer choices use estimates. So, it's a non-issue here.

This is actually important because test-takers should develop that orientation to quickly figure out what really matters in a question. Clearly, estimates/estimate is not a differentiator here.

I want to clarify, if the usage of estimates is correct here
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Re: The computer company reported strong second-quarter earnings  [#permalink]

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16 Aug 2016, 05:28
ayushman wrote:
vogelleblanc wrote:
"The computer company reported [...] earnings that surpassed [...] and [that] announced [...]."

The above interpretation is not possible for two reasons:

a) If “[that] announced” would again mean that “earnings” are announcing (because “that surpassed” would then be parallel to “that announced”). As both of us know , earnings cannot announce anything.

b) The absence of an explicit “that” is intentional, to make it clear that “announced” is parallel with “reported” (and not with “surpassed”).

Even I feel the same that although I know earnings can't announce but construction is such that there is ambiguity in the meaning.
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Re: The computer company reported strong second-quarter earnings  [#permalink]

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25 Feb 2017, 12:01
1
The computer company reported strong second-quarter earnings that surpassed Wall Street’s estimates and announced the first in a series of price cuts intended to increase sales further.

Issue: Modification Structure | Meaning

Analysis:
The sentence can be broken down as following:

The computer company
├─ reported strong second quarter earnings
│ └─ the earnings surpassed Wall Street’s estimates
and
└─ announced price cuts to increase sales

The correct option will connect these thoughts succinctly and unambiguously.

A. The computer company reported strong second-quarter earnings that surpassed Wall Street’s estimates and announced the first in a series of price cuts intended to increase sales further.

B. The report of the computer company showed strong second-quarter earnings, surpassing Wall Street’s estimates, and they announced the first in a series of price cuts that they intend to increase sales further.
- The subject in this option is "report" with "computer company" part of prepositional phrase that modifies report. In this option, "they" does not have a clear referent. Also, "that they ..." following "price cuts" leads to meaning issue.

C. Surpassing Wall Street’s estimates, the report of the computer company showed strong second-quarter earnings, and, for the purpose of increasing sales further, they announced the first in a series of price cuts.

- "surpassing..." incorrectly modify "the report"
- "they" does not have a clear referent

D. The computer company reported strong second-quarter earnings, while announcing the first in a series of price cuts for the purpose of increasing sales further that surpass Wall Street’s estimates.
- "for the purpose of" seems redundant.
- "that surpass Wall Street’s estimates" is too far from "second-quarter earnings" as in it does not clearly modify "second-quarter earnings" (though it should)

E. The computer company, surpassing Wall Street’s estimates, reported strong second-quarter earnings, while announcing that to increase sales further, there would be the first in a series of price cuts
- "surpassing..." incorrectly modify "The computer company"

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Re: The computer company reported strong second-quarter earnings  [#permalink]

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13 Mar 2017, 11:02
The computer company reported strong second-quarter earnings that surpassed Wall Street’s estimates and announced the first in a series of price cuts intended to increase sales further.

A. The computer company reported strong second-quarter earnings that surpassed Wall Street’s estimates and announced the first in a series of price cuts intended to increase sales further. Correct answer.
B. The report of the computer company showed strong second-quarter earnings, surpassing Wall Street’s estimates, and they announced the first in a series of price cuts that they intend to increase sales further. 'They' is arguable.
C. Surpassing Wall Street’s estimates, the report of the computer company showed strong second-quarter earnings, and, for the purpose of increasing sales further, they announced the first in a series of price cuts. Wordy and complicated,while they is arguably refering to two antecedents.
D. The computer company reported strong second-quarter earnings, while announcing the first in a series of price cuts for the purpose of increasing sales further that surpass Wall Street’s estimates.The reports and the announcement did not surpass the estimates,only the report did.
E. The computer company, surpassing Wall Street’s estimates, reported strong second-quarter earnings, while announcing that to increase sales further, there would be the first in a series of price cuts The computer company did not surpass the wall street's estimates,the repords did.
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Re: The computer company reported strong second-quarter earnings  [#permalink]

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17 Apr 2017, 01:31
Solved this through elimination. Answer 'A' for me.
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Re: The computer company reported strong second-quarter earnings  [#permalink]

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17 Apr 2017, 03:54
The computer company reported strong second-quarter earnings that surpassed Wall Street’s estimates and announced the first in a series of price cuts intended to increase sales further.

A. The computer company reported strong second-quarter earnings that surpassed Wall Street’s estimates and announced the first in a series of price cuts intended to increase sales further.
B. The report of the computer company showed strong second-quarter earnings, surpassing Wall Street’s estimates, and they announced the first in a series of price cuts that they intend to increase sales further.
C. Surpassing Wall Street’s estimates, the report of the computer company showed strong second-quarter earnings, and, for the purpose of increasing sales further, they announced the first in a series of price cuts.
D. The computer company reported strong second-quarter earnings, while announcing the first in a series of price cuts for the purpose of increasing sales further that surpass Wall Street’s estimates.
E. The computer company, surpassing Wall Street’s estimates, reported strong second-quarter earnings, while announcing that to increase sales further, there would be the first in a series of price cuts

B is the run on setence
C and D and for the purpose of increasing ...wordy
E while announcing that to increase not correct

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Re: The computer company reported strong second-quarter earnings  [#permalink]

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15 Aug 2017, 22:20
A is correct - The sentence is clear that the company is responsible for reporting its earnings and announcing its sales plan. The placement of the relative clause that surpassed . . . makes it clear that the company's earnings, not the report, surpassed Wall Street's estimate.

I tried negation technique - you will be left with 'A' or 'D' choices. 'D' will clearly sound wordy.
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Re: The computer company reported strong second-quarter earnings  [#permalink]

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09 Sep 2017, 23:46
"reported" and "announced" are parallel to each other.

B - "surpassing wall street's estimates" is a comma + -ing modifier at the end of a sentence.
It modifies the subject of the preceding clause - "the report of the computer company".

"they" does not have a logical referent.
"price cuts that they(the company) intend to increase sales further" - does not make any sense.

C - modifier error. "Surpassing Wall street's estimates" should have modified "earnings".
"they" does not have a logical referent.

D - "surpassing Wall Street's estimates" modifies "the computer company". Illogical.
"and" requires parallelism. "and announcing" is not logically parallel to anything. Note that if it were parallel to "surpassing", the comma before the "and" would not be necessary.

E - "surpassing wall street's estimates" modifies "the computer company".
"announcing that ..." seems to modify "there would be the first in a series of price cuts". - Modifier error.
"announcing that ..." should apply to the "the computer company".

"...to increase sales further, there would be the first in a series of price cuts" - this seems to imply that only the first price cut would contribute to increased sales.

Usage of "while" (= at the same time as) does not make sense here. "reporting" and "announcing" did not happen at the same time.
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Re: The computer company reported strong second-quarter earnings &nbs [#permalink] 09 Sep 2017, 23:46

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