An earnings surprise

Question

Quizplus · Accepted Answer

An earnings surprise occurs when a company's actual earnings deviate from investors' expectations. This can result in a short-term movement in the stock price as investors adjust their positions based on the new information. It does not necessarily demonstrate inefficiency in the market or indicate a negative drift in the stock price. While there may be bias in the market's earnings expectations, this is not a requirement for an earnings surprise to occur.

An Earnings Surprise