What is a surprise of earnings?
The earnings are surprised when shares report income that is not in line with what the analysts expected to earn the company's earnings. Surprises of earnings may be positive or negative, depending on whether the company has defeated or missed the number. The shares are then likely to move up or down depending on how its income compared to the analyst's opinion. These companies have a number of different reporting requirements to the public. One of these requirements is that the company has to report how much it has gained quarterly. Each company reports income at different times and different data, but each has to report four times a year. Overall revenue is reported and these earnings are also divided by the number of unpaid shares to achieve earnings. The final analysts do how well they are doing, and how well its actions are doing how much the company should earn. There are a number of different analysts who make estimates and usuallyThere is a prediction of consensus, an average number that most analysts believe that the company should report. The larger the shares or the company, the more analysts are likely to estimate or estimate the expected earnings of the company.
When the company shows its income, this number is compared with the number that analysts believed to report. If the number does not correspond to what the analysts expected, it is considered to be a surprise of earnings. Investors often respond to the fact that the shares did not perform because the market forces expected to play, buy or sell in response to the surprise of earnings.
If the stock is missing Uchonings, it can be considered a hint that the company does not do as well as it should do, given the market conditions and performance of its competitors. Shareholders as such tend to sell shares because it is believed that shares would beThey were supposed to do better, and is therefore a bad or risky investment. On the other hand, shares that have better than expected or better than average earnings are often considered to be a good purchase. However, the surprise of earnings does not always lead to the rational behavior of the buyer/seller.