What is a stock's earnings surprise ratio?

@marion.bernhard 

A stock's earnings surprise ratio is a financial metric used to measure how a company's actual earnings compare to the market's expectations. It is calculated by taking the difference between the company's actual earnings per share (EPS) and the consensus estimate of analysts for that period, and then dividing it by the consensus estimate. The result is expressed as a percentage.

A positive earnings surprise occurs when a company reports higher earnings than expected, resulting in a positive surprise ratio. Conversely, a negative earnings surprise happens when a company reports lower earnings than expected, leading to a negative surprise ratio.

Investors and analysts pay attention to a stock's earnings surprise ratio as it can provide insights into a company's financial health, management's ability to meet or exceed expectations, and potential stock price movements.