Despite the increased frequency of analyst forecasts during earnings announcements, empirical evidence on the interaction between the information in the earnings announcement and these forecasts is limited. We examine the implications of reinforcing and contradicting analyst forecast revisions...

The first author is at Concordia University, Montreal, Quebec and The Hong Kong Polytechnic University. The second author is at McMaster University, Hamilton, Ontario and The Hong Kong Polytechnic University. The third author is at Concordia University. They have received very helpful comments...