In time-series models of earnings, the forecast error provides a measure of the deviation in quarterly earnings announcements or surprises which can be related to previous errors to obtain a measure known as the

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Standardized unexpected earnings, or SUE, is a measure of the difference between actual earnings and the forecasted earnings. It is calculated by dividing the forecast error by the standard deviation of forecast errors. SUE is used to identify positive or negative earnings surprises and can be linked to stock returns and abnormal returns. Dividend decision, market beta, and abnormal return are not directly related to forecast errors in time-series models of earnings.

In Time-Series Models of Earnings, the Forecast Error Provides a Measure