How does DM's EPS surprise history affect its stock price?

Desktop Metal's (DM) inconsistent EPS performance relative to expectations has had varied impacts on its stock price: 1. **Q4 2022 Earnings Surprise**: DM reported an EPS of $0.09, slightly better than the consensus estimate of $0.10. This positive surprise contributed to a 10% earnings surprise, indicating that the stock price reacted positively to the news. However, the company missed revenue estimates, which could have had a negative impact if investors placed significant weight on revenue expectations. 2. **Q1 2023 Earnings Surprise**: DM's EPS was in line with expectations at $0.08, but the company missed revenue estimates again. This time, the absence of a positive earnings surprise, combined with the revenue miss, could have led to downward pressure on the stock price. 3. **Trend Analysis**: Over the last four quarters, DM has only surpassed EPS estimates once, with the most recent achievement being the Q4 2022 positive surprise. This suggests that when DM beats expectations, it can lead to a positive stock price movement. However, the consistency of these surprises and the impact of revenue estimates on stock price fluctuations are important considerations. In summary, DM's stock price is likely to be influenced by its EPS performance relative to expectations, with positive surprises potentially leading to short-term stock price appreciation. However, the impact is not guaranteed, and the direction of the stock price is also influenced by the company's revenue performance and broader market conditions.