Academic studies have found that actual earnings
A)fall randomly around the consensus estimate.
B)tend to come in at or above the forecast.
C)almost never seem to beat estimates by a penny or two a share,no matter what the economic conditions.
D)rarely are close to analysts' forecast earnings for the company.

Question

Quizplus · Accepted Answer

Academic studies have consistently found that actual earnings tend to come in at or above the forecast. This is known as the "earnings surprise" phenomenon, where companies consistently beat earnings estimates.

Academic Studies Have Found That Actual Earnings