With the earning season nearing its close, investors have seen a lot of companies losing steam from their bullish runs. In contrast, others are being aggressively bought due to renewed confidence and interest in the company. Investors who focus on those companies will see a common metric being looked at by the market. The “Earnings Surprise.” This is the percent difference between the actual earnings from the analysts' expectations. This allows investors to easily see if the company has been performing better than expected or has been unable to keep up with the market's performance expectations. To better understand earnings surprise, let’s first look at earnings reports.
