EPS & Revenue Estimates

What analyst estimates are, how beats and misses are measured, why revenue matters alongside EPS, and why a beat doesn’t always send a stock higher.

The expectations game

Before a company reports, analysts who follow it publish estimates for revenue and earnings per share. The average of those forecasts is called the consensus estimate. When results come out, the market compares them with the consensus. Beating it means results were better than expected; missing means they were worse.

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