consensus estimate business definition

The average of multiple analyst earnings estimates for a particular stock. For example, if three analysts estimate next year's earnings per share for a company at $3.00, $3.20, and $2.70, the consensus estimate is ^{($3.00 + $3.20 + $2.70)}/₃ , or $2.97. Reporting earnings per share different from the consensus estimate is likely to affect the stock's market price.