Effect of Earnings on Stock Price Query

Discussion in 'Stocks' started by frcrilly, Jul 12, 2010.

  1. frcrilly

    frcrilly

    Hi All,

    I have a query in relation to the effect of Earnings announcements on stock price. On Yahoo finance there is an earnings calendar stating when companies are expected to make their next earnings announcements. For some companies on this calendar, Yahoo provide an estimated earnings per share figure (supplied by Thomson Financial Network) with the remainder being marked N/A.

    I am interested in learning which kind of earnings announcement usually causes the greatest movement in the stock price. Does it tend to be the stock where no previous earnings per share estimate is available (hence more likely to surprise the market), or does it tend to be the stock where an estimate is available (from which point the market may react significantly when actual earnings turn out to be different than expected earnings).

    Query in short: which stocks tend to move more after earnings announcements, stocks without estimated earnings available beforehand or stocks with estimated earnings available beforehand.

    Possibly a tricky question, but any general rule of thumb opinions from people with stock market experience in this area would be greatly appreciated.

    Thanks in advance for all responses.