Glossary Detail: Earnings Surprise
Related Premium Insight
Backtesting Earnings Surprise on High-Beta Names
The difference between a company's reported earnings and analyst consensus estimate — drives some of the largest single-day stock moves.
Further Details:
An earnings surprise occurs when a company's reported earnings per share (EPS) differs from the Wall Street consensus estimate. A positive surprise (beat) means the company earned more than expected; a negative surprise (miss) means less. The magnitude of the surprise and the stock's reaction determine the trading opportunity.