The market has rewarded positive earnings surprises in Q1 less than average
The market has punished negative earnings surprises more than average during this earnings season. Companies in the S&P 500 that have reported positive earnings surprises for Q1 have seen an increase in price of 0.7% on average from two days before the company reported actual results through two days after the company reported actual results.
Companies in the S&P 500 that have reported negative earnings surprises for Q1 have seen a decrease in price of -3.5% on average from two days before the company reported actual results through two days after the company reported actual results. While more S&P 500 companies have issued negative EPS guidance for the second quarter than average, industry analysts have made smaller cuts to Q2 EPS estimates than average.