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Measurement error in unexpected earnings is recognized as a source of bias in examinations of the relation between earnings and returns.
Sunbeam has been in crisis since Albert J. Dunlap, its once-celebrated chief executive, delivered several quarters of unexpected earnings disappointments last year and was ousted in June.
Roche Holding, the world's biggest maker of cancer medicines, reported an unexpected earnings increase for the first half as demand grew for its drugs Avastin, Herceptin and Tarceva.
In addition, for firms that foreshadow impending PEA revisions in the earnings press release (19% of our sample), we find that the market reaction around the release of preliminary earnings reflects the market's reliability concerns, as evidenced by the fact that the market reaction to unexpected earnings is less (more) pronounced for good (bad) news.
Play like the big boys and check the "standardized unexpected earnings," or SUE, score published by the earnings trackers.
Following an unexpected earnings miss and a debt downgrade, natural gas company El Paso went from January's top-ten gainers list to February's biggest decliner.
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Loulou was wild, a mixer of haut vintage and cheap ethnic, happy to splurge unexpected cash earnings of $1,000 on orange leather fringed hotpants, and then dance them to shreds.
Investors rewarded Snap Inc. handsomely Wednesday following the social media company's unexpected positive earnings report, pushing shares up 47%.
Even if a business knows how normal weather affects its earnings, unexpected abnormal weather present their own risks.
Even if a business knows how normal weather affects its earnings, unexpected abnormal weather events present their own risks.
The company has previously moved to rectify its problems by settling stockholder lawsuits prompted by unexpected charges to earnings, and through layoffs, merging agencies and paying down debt.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com