Consensus estimate
Also called: consensus forecast, analyst estimates, street estimates
The average of analysts' forecasts for a company's revenue, profit or earnings per share, or of economists' forecasts for a data release.
Consensus figures are a rough measure of what the market expects. Prices react to the gap between actual results and expectations. Estimates are often revised during a quarter, so a result that beats a lowered estimate can still be weaker than once expected.
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- Expectations and surprisesWhy can a company report record profits and see its share price fall?
- Corporate earnings seasonsHow do you read a company's quarterly results without being misled by the headline?
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