Earnings Miss
When a company reports EPS or revenue below the analyst consensus estimate. Typically triggers a sharp stock decline.
An earnings miss is when actual reported results come in below the consensus analyst estimate on EPS, revenue, or both. The market reaction is usually negative and can be severe — especially if guidance is also cut simultaneously (a "double miss").
Misses tend to create asymmetric damage: the selloff on a miss is often larger in percentage terms than the gain on an equivalent-sized beat, because misses raise doubt about management's forecasting ability and the business's durability.
The first miss after a long streak of beats is particularly punishing. The market reprices the entire earnings trajectory, not just the single quarter.
Related Terms
Earnings Beat
When a company reports EPS or revenue above the analyst consensus estimate. Often triggers a stock price increase.
BeginnerEarnings Gap
The overnight price jump or drop a stock makes between the prior close and the open after an earnings report.
IntermediateEarnings 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