"Earnings surprises" occur when a company's reported earnings differ significantly from analysts' expectations. These surprises can be positive, where earnings exceed forecasts, or negative, where they fall short. Such discrepancies often lead to immediate reactions in the stock market, affecting the company's share price. Investors closely monitor earnings surprises as they can indicate a company's financial health and future performance. A consistent pattern of positive surprises may suggest strong management and growth potential, while frequent negative surprises could raise concerns about the company's operations or market conditions.