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Earnings surprises

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Earnings surprises
Positive or negative differences from the consensus forecast of earnings by institutions such as First Call or IBES. Negative earnings surprises generally have a greater adverse effect on stock prices than a reciprocal positive earnings surprise.


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Investors have reacted negatively to recent earnings surprises, and the values of certain insurance companies have dropped as a result.
But with upside earnings surprises becoming more common, investors have become more savvy about them.
Footwear maker Crocs (Nasdaq: CROX) is three-for-three in reporting positive earnings surprises as a publicly-traded company.
 
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