Then what happens? Take a look at Ruby Tuesday's. Negative EPS, but because they beat expectations, the stock shot up to ~$8 today from $3 when they announced. I think that's 167%.
RT sticks with me as I had a limit order to buy 5000 shares at $3.05 and it closed at $3.10 and it's been all up from there. With negative EPS, I wasn't going to buy when it's green. That one slipped through my fingers.