Earnings Beat
When a company reports EPS or revenue above the analyst consensus estimate. Often triggers a stock price increase.
An earnings beat occurs when a company's reported EPS, revenue, or both exceed the consensus estimate compiled from Wall Street analysts before the report. The size of the beat — a $0.02 beat versus a $0.30 beat — and what guidance says next determines the magnitude of the reaction.
Not all beats are created equal. If a stock has already rallied 30% into earnings pricing in a big beat, even a solid beat can cause a "sell the news" selloff. Context matters: the implied move in the options market reveals how much volatility traders have priced in.
Structural beats driven by genuine operating leverage are different from beats engineered via share buybacks (which inflate EPS mechanically without operational improvement).
Related Terms
Earnings Gap
The overnight price jump or drop a stock makes between the prior close and the open after an earnings report.
IntermediateEarnings Miss
When a company reports EPS or revenue below the analyst consensus estimate. Typically triggers a sharp stock decline.
BeginnerEarnings Report
A company's official quarterly disclosure of revenue, earnings, margins, and guidance. The biggest recurring event in single-stock trading.
BeginnerEarnings Season
The 4–6 week window each quarter when most public companies report results. Runs approximately January, April, July, and October.
BeginnerEPS (Earnings Per Share)
Net income divided by shares outstanding. EPS is the single most-watched earnings metric for valuing a stock.
BeginnerForward Guidance
Management's public forecast for future revenue, earnings, or margins. Often moves the stock more than the reported quarter itself.
Intermediate