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When a firm’s earnings are finally announced, a negative earnings surprise will most likely occur under which of the following situations? A. Earlier in the fiscal year, analyst forecasts tend to be more pessimistic than what the firm ends up reporting. Later in the year, analyst forecasts tend to be more optimistic than what the firm ends up reporting. B. Earlier in the fiscal year, analyst forecasts tend to be more optimistic than what the firm ends up reporting. Later in the year, analyst forecasts tend to be more pessimistic than what the firm ends up reporting. C. Regardless of the timing, analyst forecasts are more pessimistic than what the firm ends up reporting. |