Earnings Surprise

An earnings surprise occurs when a company's reported quarterly profit or loss significantly differs from what analysts expected. If the company's earnings are higher than anticipated, it's called a positive surprise; if lower, a negative surprise. These surprises can impact the company's stock price, as investors interpret them as signals of the company's performance and future prospects. Essentially, earnings surprises reflect how well or poorly a company performs relative to expectations, influencing investor confidence and market movement.