Earnings surprises

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.

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.
References in periodicals archive ?
The changes expand the guidance given for analyst and investor briefings, analyst forecasts, consensus estimates and earnings surprises.
Learn how you can identify the financial characteristics of firms that typically precede negative circumstances, helping you to anticipate their occurrence and their accompanying earnings surprises.
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.
Some of the more impressive earnings surprises in staples include General Mills (NYSE: GIS), Constellation Brands (NYSE: STZ) and Campbell Soup (NYSE: CPB).
Big Lots (NYSE: BIG) receives a regular mention in this column, having issued eight positive earnings surprises in a row.
Walt Disney (NYSE: DIS) has traded upward following positive earnings surprises before, and the entertainment conglomerate did exceed fourth-quarter expectations by a margin of 11 cents.
Footwear maker Crocs (Nasdaq: CROX) is three-for-three in reporting positive earnings surprises as a publicly-traded company.
Fourth-quarter earnings season is shaping up to be fairly similar to the third-quarter earnings season in terms of growth, though the number of negative earnings surprises is higher.
The Walt Disney Company (NYSE: DIS) has delivered 14 positive earnings surprises in a row.
History would certainly seem to be on the company's side, which includes a run of positive earnings surprises the last five quarters in a row.