Dictionary

consensus earnings estimate

A simple average of the earnings estimates for a quarter or year provided by equity analysts that cover a stock. Investors follow revisions to consensus earnings estimates over time as they have been shown to be short-term drivers of stock prices. Earnings per share reported by the company after the end of a quarter is compared to the consensus estimate to determine if a company's earnings are surprising or not.

BECOME A MEMBER FOR ONLY $2

Providing the education, tools, and individual investors need.