Estimates Are Hazardous to Your Wealth. Everyone knows that accounting is boring (not when I teach it, though), but, at least, people think it’s factual. No fake news. After all, accounting comes from counting―counting money, units of inventory, etc. All facts. Nothing further from the truth. Except for a...
As we enter the heart of the S&P 500 1Q earnings season, and the CNBCs of the world focus on the number of companies that (surprise) beat earnings expectations once again, remember this fact: earnings expectations have been beaten down over the past six months....
It’s no secret that growth estimates for companies all over the world have been weak recently. We’re written about the topic here and here in just the last week. What remains striking, though, is that six years into a recovery top and bottom line growth...
We track analyst estimates in a variety of ways. We look at growth rate expectations over the next four years. We also measure the percent change in the level of USD estimates across various time frames. We also track the difference in growth rates now...
Without delving into the multitude of reasons for the drop, we just point out that EPS estimates for next twelve months are falling like a stone in North America and Europe and for these two regions the bottom line estimates point to the lowest growth...
We have recently commented on how sales and earnings estimate revisions have been in a decline (here and here). Today, we wanted to look at just what kind of growth rates are imbedded in those falling estimates....
60% of stocks in the MSCI World Index have experienced negative EPS revisions for the next fiscal year (FY1). Only two sectors, Financials and Information Technology, have at least half of their companies raising FY1 EPS estimates....
In the Asia-Pacific region, about two-thirds of companies have reported Q1 earnings. Of those companies, about 57% have surprised on the upside, versus just 42% that have disappointed expectations. The Health Care sector has generated positive surprises in 85% of its earnings releases so far....
Earnings estimates (and sales estimates to an extent) have taken a beating over the past three months. On average, EPS growth estimates are down 5.3% for the next fiscal year during this time....
With just weeks to go before the year wraps up we are surprised by the significant decline we’ve seen in 2013 EPS estimates since October. It seems analysts are suddenly taking a more sober view on the year’s earnings, and the phenomenon is global....
In what has become a common theme during this cycle of hockey stick estimates being persistently lowered, earnings estimates have once again been dropping for most companies around the world....
