Earnings surprise
Also called: earnings beat, earnings miss
The difference between a company's reported result and the consensus estimate.
Record profits below expectations can send a share down, and a smaller-than-expected loss can send it up. Management's outlook often matters more than the size of the surprise.
Example
Expected profit ₹1,200 crore, actual ₹1,150 crore is a ₹50 crore negative surprise, even if it is a record.
Learn more in these lessons
- Expectations and surprisesWhy can a company report record profits and see its share price fall?
Related terms
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