What is Earnings Beat?
An earnings beat occurs when a company's reported EPS (earnings per share) exceeds the consensus of Wall Street analyst estimates. "Beat-and-raise" โ beating EPS and raising forward guidance โ is the most bullish combination. The reverse โ "miss-and-cut" โ is the most bearish. Magnitude matters: small beats may not move stocks if expectations were already high.
Why it matters for investors
Beats and misses drive a meaningful share of single-stock returns. Earnings season โ clustered four times a year (Jan-Feb, Apr-May, Jul-Aug, Oct-Nov) โ is when sector rotation and stock-specific narratives crystallize. Earnings revisions trends often persist, making beats good signals to research further.