Glossary·Written by a CPA
Earnings beat or miss
Whether a company's reported results came in above or below what analysts were expecting for the quarter.
When a company reports earnings, the headline is almost always whether it beat or missed, which basically just means whether its revenue and earnings per share came in above or below the consensus estimate.
Companies often guide a little conservatively, so small beats are really common. That's part of why the stock's reaction usually depends more on the guidance for next quarter and the details on the call than on the beat itself.
For you, it helps to look past the headline. A beat that came from a lower tax rate or a one-time gain is a lot different from a beat that came from customers actually buying more.
The catch. Many beats are measured against adjusted earnings, so a company can beat on its own non-GAAP number while its GAAP profit tells a weaker story.
Where I talk about it
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This is education, not tax or investment advice. I'm a CPA, but I'm not your CPA. Full disclaimer.