-on financial analysts' reactions. We explore the effect of information conveyed by prior-year earnings announcements on the current …-year forecast error. Our findings in the Saudi financial market reveal a tendency for overreaction to positive prior-year earnings … the negative prior-year earnings change (bad performance) and negative prior-year forecast error (bad surprise). Notably …

affect future earnings announcements. A cross-sectional equity trading strategy that exploits this inefficiency yields an … annualized Sharpe Ratio of 0.57. Stock prices respond to lagged quarterly oil price changes when firms start announcing earnings … absolute oil price changes and during the peak of the earnings cycle. The predictability we document is not explained by risk …