Earnings estimate

Earnings Estimate

An analyst's best guess as to what a company's earnings will be for a given quarter or year. Analysts use a variety of methods, mostly involving past information and current news, to arrive at earnings estimates. They are circulated prior to a company's announcement of its earnings statement. If earnings are lower than most estimates, this can cause a decline in its share price. Likewise, unexpectedly high earnings can cause a price jump.

Earnings estimate.

Professional stock analysts use mathematical models that weigh companies' financial data to predict their future earnings per share on a quarterly, annual, and long-term basis.

Investment research companies, such as Thomson Financial and Zacks, publish averages of analysts' estimates for specific companies. These averages are called consensus estimates.

References in periodicals archive ?
The free special report; "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions" is available to provide this insightful background.
a Zacks #1 Rank stock, topped the Street's earnings estimate for the past four quarters by an average margin of 19.
That's why we created the free special report; "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.
NYSE:TOL) has seen this year's earnings estimates drop 31 cents per share over the past two months.
NASDAQ:ENMC) has seen this year's earnings estimates drop 40% over the past two months.
The company has failed to exceed earnings estimates in each of the past three quarters.
NYSE:F) has seen its earnings estimates drop for this year.
AU-Optronics ADR (NYSE:AUO) has seen its earnings estimates drop for this year.
NYSE:CD) has seen its earnings estimates drop for this year.
To see the Zacks Industry Rank and the trend in earnings estimates revisions for all 208 industry groups, visit http://at.

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