From MarketWatch:
It’s largely meaningless for a journalist to say a company has “beaten” analysts’ earnings estimates because of the infamous numbers game played by Wall Street and CEOs. Still, it’s worth reviewing those whose estimates for the following year have surged.
Analysts sometimes lower estimates heading into earnings season to help “fuel the beats.” Some companies “help” ensure those beats by lowering their own earnings “guidance.”
Regardless, if a company posts better-than-expected results, analysts have to raise their current-year earnings per share estimates. That will happen even if the surprisingly strong quarter reflects a one-time event, such as a profit from an asset sale.