Oops, our earnings were indeed preliminary

Dana Hollie*, Joshua Livnat, Benjamin Segal

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

15 Scopus citations


The market reacts to earnings surprises when firms report different earnings in SEC filings from earnings reported just a few weeks earlier in preliminary earnings announcements. This is a new finding. When SEC filings include material new information, investors incorporate this in pricing company shares. Market reactions are stronger in the case of downward earnings revisions than upward earnings revisions, but an inverse drift in abnormal returns occurs for upward earnings revisions after the SEC filing date. Finally, it is documented that security analysts revise their forecasts upon the preliminary earnings announcement, but ignore the new information in the SEC filings.

Original languageAmerican English
Pages (from-to)94-104
Number of pages11
JournalJournal of Portfolio Management
Issue number2
StatePublished - 2005
Externally publishedYes


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