When companies deliver their quarterly results, investors are
watching - not just for improvements, but also for how these
results compare to analysts' estimates. If the company surprises
the market with better-than-expected earnings, the stock usually
jumps. On the other hand, disappointing results can cause the
stock to tumble. In this article, we'll show you how
understanding surprises in earnings can help you as an investor
cope with quarterly earnings seasons.  Earnings surprises occur
when a company's results differ from so-called consensus
estimates. How earnings results measure up to Wall Street
analysts' estimates are important to the price of stocks. Keenly
watched and widely disseminated, quarterly earnings
announcements made by companies are key triggers for short-term
stock price behavior.  Stocks of companies that surprise the
market with better-than-expected quarterly numbers are swiftly
ratcheted-up in value. By contrast, a negative earnings surprise
will usually cause the stock to be sold off