Increase in profit but decrease in share price?

Many possible reasons, a few of which are: 1) Negative outlook for that sector, thus market believes increases are anomalous, 2) Company is taking on new debts, 3) Company is not reinvesting those profits in a way which will promote eventual growth 4) Increased profit created by a one time deal/ or created by some means which is considered unsustainable...

Short term profitability changes do not drive long term value of shares. If overall value or growth potential of a company are not seen by the market to be increased, even with the occurrence of a recent increase of profitability, share prices will not rise! Remember, the price of a stock is based primarily on PEOPLE's subjective opinion, or what they are willing to buy/sell it for. So if people perceive that a company will begin to/continue to struggle, in spite of recent increases in profitability, there will be few buyers to support the price of that company's stock. A company might be increasing profits while at the same time fire-selling its assets, and thus the asset value of the company is decreasing. Profit increases/decreases are a small part of the overall picture!