Corporate actions
Consensus estimate
The average of analysts’ forecasts for a company’s revenue or earnings.
How it works
Consensus is the reference point against which results are judged. Beating or missing it is what generates the immediate price reaction.
The whisper number — an informal expectation circulating among traders — can differ from published consensus and sometimes explains a reaction that otherwise looks odd.
Where it misleads people
Analyst estimates are anchored on company guidance, so a "beat" often means the company set a bar it knew it could clear.
Related terms
- Earnings announcementA company’s scheduled publication of its financial results for a quarter or year.
- GuidanceA company’s own forecast of its future results.
- Earnings surpriseThe gap between reported earnings and what analysts expected.
- Analyst ratingA published recommendation on a share, typically buy, hold or sell.
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