Earnings beat and miss

A beat is results above the consensus estimate; a miss is below. Most large US companies beat most quarters because guidance is set to be beaten, so a small beat is priced and the guide decides the move. Micron beat by $3.2 billion and finished the week lower, and a beat made of refund money does not get paid.

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In MochaLearnLearn how to read US earnings
  • Guidance (earnings guidance)Guidance is a company's own forecast for the next quarter or year, given with results. The quarter was priced weeks…
  • Consensus estimateThe consensus estimate is the average analyst forecast for a company's earnings or an economic number. Markets price…
  • Earnings season / earnings reportEarnings season is the weeks after each quarter ends when most US companies report, starting with the big banks around…
  • EPSEPS is earnings per share: net profit divided by shares outstanding. On results day it is compared with the published…
  • Earnings callThe earnings call is the conference call where management discusses results and takes analyst questions, usually…
  • Magnificent 7The Magnificent 7 are Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla, seven companies that drove most of…

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