Explanation

Understanding the Metrics:

Percentage Surprise = (Actual EPS - Forecast EPS) / |Forecast EPS| × 100%

Standardized Unexpected Earnings (SUE) = (Actual EPS - Forecast EPS) / Standard Deviation of Forecast Errors

Analysis:

Both metrics measure how much actual earnings differ from consensus forecasts:

• Lower values indicate smaller deviations from expectations
• Higher values indicate larger surprises

Company A has:

• Lower percentage surprise → smaller deviation from forecast
• Lower SUE score → smaller standardized deviation from forecast

Interpretation: Since Company A has smaller deviations from consensus forecasts on both measures, its consensus earnings forecast is more accurate than Company B's.

Key Insight: Smaller surprise metrics indicate that analysts' forecasts were closer to actual results, suggesting better forecast accuracy.

Conclusion: Company A's consensus earnings forecast is most likely more accurate than Company B's.