On average, over the last six years, companies have beaten estimates by nearly three percentage points.

The results beat analysts' estimates of 25 cents a share.

Companies met or beat the analysts' estimates and their stocks went up.

"We beat our estimates, and that's all that really matters," he added.

In the previous three quarters, between 58 and 65 percent had beaten analysts' estimates.

"Even when you take out the extraordinary items, they appear to have beat our estimates for operating income," he said.

But so are those in the media who report breathlessly when companies beat estimates by a penny or two.

The quarterly results, which easily beat analysts' estimates and were the second best ever for the firm, sent shares 4 percent higher.

In each of the last six quarters, 18 percent of companies, on average, beat their estimates by a penny.

Returns over five days were flat in 1998, while stocks of companies beating estimates by a cent have lost an average 1.42 percent this year.