An earnings surprise results from incorrect estimates of future earnings.

Name: An earnings surprise results from incorrect estimates of future earnings.
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Question

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An earnings surprise occurs when the actual earnings reported by a company differ from the earnings that were expected or forecasted by analysts or investors. If the actual earnings are higher than expected, it is called a positive earnings surprise, while a lower-than-expected earnings result in a negative earnings surprise.

An Earnings Surprise Results from Incorrect Estimates of Future Earnings