News Formal

The Impact of Earnings Estimates on Stock Prices

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 8 sec. here
  • 7 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 97%

Finance Nouvelles

Earnings,Estimates,Stock Prices

Investors should pay attention to earnings estimates as they can impact stock prices over the long term.

Each earnings season, most publicly traded companies will report results that beat analysts’ consensus estimates for sales and earnings. Positive “surprises” are set up and expected, with a typical “beat rate” of 70% or so. Investors can take a single quarter’s earnings surprise with a grain of salt, especially if the results are only slightly ahead of expectations. But this doesn’t mean you should ignore the estimates.

Over long periods, a pattern of rising estimates tends to drive stock prices higher. And the reverse can be correlated with price declines

 

Merci pour votre commentaire. Votre commentaire sera publié après examen.
Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 3. in FR

France Dernières Nouvelles, France Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Arista Stock Jumps as Earnings Top EstimatesInvestors had worried about the outlook after Meta Platforms issued a more conservative capital-spending forecast than expected.
La source: MarketWatch - 🏆 3. / 97 Lire la suite »

AGCO Stock Is Rising. Earnings Crushed Estimates.Farm-equipment maker AGCO saw 'robust demand' as third-quarter numbers beat estimates. It also raised guidance.
La source: MarketWatch - 🏆 3. / 97 Lire la suite »

Fresh Del Monte’s stock slides premarket after earnings fall short of estimatesCiara Linnane is MarketWatch's investing- and corporate-news editor. She is based in New York.
La source: MarketWatch - 🏆 3. / 97 Lire la suite »

CVS Earnings Top Estimates but Stock Drops as Outlook Is Slashed AgainCVS revises lower its guidance range for diluted GAAP earnings per share for the third straight quarter.
La source: MarketWatch - 🏆 3. / 97 Lire la suite »

Wingstop’s stock pops 7% after earnings beat estimates by a wide marginCiara Linnane is MarketWatch's investing- and corporate-news editor. She is based in New York.
La source: MarketWatch - 🏆 3. / 97 Lire la suite »

Airbnb Earnings Top Estimates, But Stock Slips on Light GuidanceAirbnb posted revenue of $3.4 billion, up 18% from a year ago.
La source: MarketWatch - 🏆 3. / 97 Lire la suite »