Glossary · Events

Earnings surprise

How far a company’s reported earnings per share beat or missed the analysts’ average estimate.

Why it matters

Most companies beat by a little because guidance is set conservatively. A miss, or a beat with weak guidance, is what moves stocks down.

How to read it

A consistent record of beats suggests management guides cautiously.

Related

Earnings estimatesWhat analysts expect a company to earn per share in coming quarters and years.Earnings reportThe quarterly results a public company must publish: sales, profits and usually guidance.

In the Cluenex app, this explanation opens next to every earnings surprise figure, with the live reading for the stock you are looking at. Open it in Cluenex