Earnings surprise

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  • 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.


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  • Browse Related Terms: Earnings momentum, Hedging, Market cycles, Momentum investing, Quarter, Whisper number

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