Investopedia explains 'Earnings Announcement'
Because the earnings announcement is the official statement of a company's profitability, the days leading up to the announcement are often filled with speculation. Analyst estimates can be notoriously off-the-mark, and can rapidly adjust up or down the days leading up to the announcement. This can attract the attention of investors who take the estimates at face value, artificially inflating the share price on speculative trading.
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