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club_cafe: surprises?
Pam,

The "% surprise" is how much the actual eps varied from the expected eps. If the analyst projected/expected $.25/share eps in a quarter and the company actually reported $.26, the % surprise would be (.26 - .25)/.25 * 100 = 4%. This number seemed to be very important in the mid-'90s for reasons that never made sense to me. Analysts would underestimate future earnings so the companies would look better each quarter when they reported.

Ira Smilovitz

In a message dated 01/14/03 1:08:16 AM Eastern Standard Time, pam_tuttle@bivio.com writes:

I've been studying a lot of analyst's reports and there is one recurring term that I don't understand.  "% surprise"  What exactly does that mean? 

Signed 1st year investor.   Pam Tuttle.