Earnings Surprise:

An earnings surprise is the difference between companies reported quarterly or annual profits and analysts’ expectations. Theoretically, analysts’ expectations about a company's performance are based on its previous quarterly or yearly reports, the company guidance and current market conditions. The company earnings could be above or below these analysts’ expectations.


can have a huge impact on a company’s stock price; a negative surprise will gradually result in decline in share price and vice –versa and leads to fluctuations at the Indicies (like S&P500, DowJones) as well.