Consensus Estimate

Consensus estimate means the average or common forecast from a group of analysts. In simple terms, it shows what Wall Street generally expects. Consensus estimates are important because markets often react to whether actual results come in above or below them. Investors use consensus estimates as a benchmark for earnings, revenue, inflation, jobs data, and other reports. For example, if many analysts expect a company to earn $2 per share, that average forecast is the consensus estimate. A consensus estimate is not always correct. It is only a forecast based on analyst views and available information.