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Market Punishing Negative EPS Surprises More Than Average
To date, the market is rewarding positive earnings surprises reported by S&P 500 companies less than average and
punishing negative earnings surprises more than average.
Companies that have reported positive earnings surprises for Q1 2024 have seen no change in price (0.0%) on average
two days before the earnings release through two days after the earnings release. This percentage is smaller than the 5-
year average price increase of +1.0% during this same window for companies reporting positive earnings surprises.
Companies that have reported negative earnings surprises for Q1 2024 have seen an average price decrease of -6.1%
two days before the earnings release through two days after the earnings. This percentage decrease is much larger than
the 5-year average price decrease of -2.3% during this same window for companies reporting negative earnings surprises.

https://advantage.factset.com/hubfs/Website/Resources%20Section/Research%20Desk/Earnings%20Insight/EarningsInsight_041924.pdf?hsCtaTracking=31d0f488-5c02-4193-b93b-f1708067f4fa%7Cb994622e-6b82-4c98-ad34-76c848088314