On Average Most Companies Beat Earnings And Revenue Estimates

Earnings for Q1 2013 are coming this month. Should you be surprised when a company beats its earnings estimates? No says Bespoke Investment Group. They posted an article a while ago showing that most companies beat the earnings and revenue estimates made by analysts.

Earnings:

average earnings beat quarter estimates

And Revenues:

average revenues estimates beat quarter

As most stocks have a short ‘pop’ after an earnings and revenue beat you could of course use this information to make a little speculative bet by going long a few stocks on the day that they will be reporting earnings.

Although, of course, results from the past provide no guarantee for the future.

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