Answer: more accurate than Company B's.

## 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.

Author: LeetQuiz Editorial Team