This study examines whether quarterly earnings announcements convey information about the economic impact of prior tender offer transactions when investors' uncertainty associated with the tender offer has not been fully resolved. To empirically test this question, abnormal returns during the subsequent earnings announcement periods were examined. The results of this study reveal that, on average, acquiring firms earn positive abnormal returns during the earnings announcement periods over the eight quarters following the acquisition announcement. These results were robust to the use of various research methodologies. These findings indicate that investors underreact to acquisition announcements and that subsequent earnings announcements play an important role in correcting this investor underreaction.