During quarterly earning season, much is made about whether or not companies report earnings that beat analysts’ expectations.

As you can see from the chart above from Deutsche Bank’s Binky Chadha, most companies usually beat expectations.

Over the past 16 years, an average of 74% of S&P 500 companies have beat quarterly earnings expectations. This beat rate never fell below 63% in any single quarter.

Some of this can be explained by companies managing analysts’ expectations so that they set the bar low.

For more on this, read:

• 'Better-than-expected' has lost its meaning 🤷🏻‍♂️

• The truth about analysts' deteriorating expectations 📉

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