Beating market estimates and beating market expectations are the same as far as I am concerned. The market estimated a good quarter with earnings of 0.32 per share, and DWA delivered Great earnings with double the analysts estimates. A companies share price is largely based upon how much money it earns. DWA earned twice as much as what analysts expected. What saddens me is not what the company has done, but how much the street depends upon the blessing of its analysts before anyone is there to reward the company. For instance, despite the huge earnings this quarter, it will take some peon analyst with a hidden agenda to upgrade DWA from hold to strong buy before the market lemmings come swooping in to buy.
I agree with you. Although I think there is no such thing as market estimates, only analyst estimates and market expectations. Sometimes they go hand in hand, sometimes they do not.
A good analyst is as good as a bad one, they are both useless in terms of value creation, but they both contribute to the mispricing of securities, and the creation and destruction of market opportunities. Like the fox and rabbit population, you just ought to keep track of which group will dominate the current cycle, take that side, and make money.