earnings surprise

Earnings Surprise

A situation in which a publicly-traded company's earnings report indicates higher or lower profit than analysts expected. This can lead to a sharp (and often unsustainable) increase or decrease in the share price. Many companies seek to avoid earnings surprises by pricing out, or slowly leaking information before the earnings report is published.

earnings surprise

Earnings reported by a company that are different from the earnings that had been expected by the investment community. An earnings surprise often produces a sharp increase or decrease in the market price of a stock.

Earnings surprise.

When a company's earnings report either exceeds or fails to meet analysts' estimates, it's called an earnings surprise.

An upside surprise occurs when a company reports higher earnings than analysts predicted and usually triggers an increase in the stock price.

A negative surprise, on the other hand, occurs when a company fails to meet expectations and often causes the stock's price to fall. Companies try hard to avoid negative surprises since even a small deviation can create a big stir.

References in periodicals archive ?
The changes proposed to Guidance Note 8 seek to address such concerns by providing further guidance on when an earnings surprise ought to be disclosed to the market.
Glance over the brief descriptions of our two recent earnings surprise candidates.
In many cases, companies' stocks will rise in the days before an upside earnings surprise is expected, then drop on the news.
The disparity between firms beating estimates, but having negative year-over-year earnings growth is particularly noticeable in Tech, where the earnings surprise ratio is a huge 10, but the growth ratio is just 0.
Yet that brings to mind one of the most confusing things about earnings season; Why do some stocks skyrocket on a positive earnings surprise while others fall off a cliff?
DVN has announced a positive earnings surprise three out of the last four quarters.
C-COR Incorporated delivered a 200% positive earnings surprise when it reported second-quarter EPS of 12 cents.
delivered a 20% positive earnings surprise for its September 2006 quarter.
Rock-Tenn Company continues to benefit from the positive earnings surprise that it reported on Nov 6, the third straight quarter that it exceeded analysts' expectations.
After KTEC delivered its positive earnings surprise, the stock closed higher by about 5%.