Earnings & Stock Reaction Glossary

The key terms you need to understand US stock earnings — from what an earnings report is, to why a stock can fall even on strong results.

Earnings basics

Earnings
A company's official report of its financial performance — revenue, profit, and more — over a period. US stocks typically report quarterly (every 3 months), often alongside guidance for the next period.
EPS (Earnings Per Share)
Net income divided by shares outstanding — the profit attributable to a single share. It is the most closely watched figure in an earnings report, compared against the consensus estimate to judge a beat or miss.
Revenue
The total sales a company generates from its products and services. It sits above profit and matters for growth. A stock can fall on weak revenue even when EPS beats.
Consensus
The average of analyst forecasts — the market's expectation. Actual results above it are a 'beat', below it a 'miss'.
Guidance
The company's own forecast for the next quarter or year. Forward guidance often moves the stock more than the just-reported results. Strong earnings with weak guidance can still send a stock down.
Pre-market (BMO) / After close (AMC)
When earnings are released. BMO (Before Market Open) is a morning release before US markets open; AMC (After Market Close) is an afternoon release after the close.

Reading the price reaction

Earnings Surprise
How far actual results beat or missed the consensus estimate. Bigger surprises tend to move the stock more — but not always.
Next-day reaction
The stock's move on the first trading day right after the report. This is the metric afterns focuses on most, showing most directly how the market received the results.
Average move on report day
The average absolute move across past earnings dates — a gauge of how much a stock swings on earnings. Large caps often move ±3–5%, more volatile names into double digits.
Price vs earnings (mismatch)
When a stock falls despite good results (a consensus beat). Often the expectation was already priced in, or the guidance disappointed. This is afterns's core lens.
Priced-in
When a stock has already risen on expectations before the report. Even strong results can then trigger profit-taking and a pullback.
Post-earnings drift (PEAD)
The tendency for a stock to keep moving in the same direction as its earnings-day reaction for days or weeks after — academically known as Post-Earnings Announcement Drift.

See it for each stock

Search a stock on the home page to instantly see its next-day earnings reaction, average move on report day, and how it reacts to guidance.

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