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FINANCIAL TERMS

Analyst Expectations

Description

Analyst expectations mean forecasts made by financial analysts about a company, market, or economy. In simple terms, analyst expectations show what experts think will happen. Analyst expectations are important because investors compare actual results with what analysts predicted. A company can do well but still disappoint the market if it performs below expectations. For example, analysts may expect a company to report $3 per share in earnings and $20 billion in revenue. Analyst expectations are not guarantees. They are estimates, and actual results can be higher or lower.