According to FactSet, while around 75% of S&P 500 companies typically beat EPS estimates, only around 60% top revenue expectations. This gap suggests that many earnings beats are driven by cost controls, share buybacks, and operational efficiencies rather than exceptional business growth. As a result, companies delivering very large EPS surprises remain a relatively small subset of all earnings reporters.
Research by LSEG has shown that analyst earnings forecasts become increasingly accurate as reporting dates approach. Because consensus estimates incorporate the latest company guidance...
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