We are right in the middle of the third-quarter earnings season. As companies announce their earnings, media and data services will report on whether or not they beat the “consensus” – the supposed collective view of the market, or “Street.” Whether or not they do will generally dictate which direction the share price trades in the days immediately after the announcement.
Unsurprisingly, analysts who have historically been more accurate predicting earnings for a particular name, or within a particular sector, continue to make more accurate estimates on those names and within that sector. Also unsurprisingly, more recent estimates are more accurate, as they benefit from any new information that might affect the companies’ profitability.
When the SmartEstimate is 20 per cent higher than the consensus estimate, earnings are better than the consensus estimate about three-quarters of the time.LSEG is one of the world’s leading providers of financial markets infrastructure. It delivers financial data, analytics, news and index products to more than 40,000 customers in 190 countries. Since 1698, we have been helping customers seize opportunities and create value.We will screen the universe of Canadian- and U.S.
For reference, also included are the number of analysts covering the stock for this quarter, and the date of the next earnings announcement.All eight companies with a predicted surprise of 100 per cent or more are listed in the United States, but two are headquartered in China and one in Canada.