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Sunday, May 10, 2020 | History

4 edition of Analyst"s forecasts as earnings expectations found in the catalog.

Analyst"s forecasts as earnings expectations

by Patricia C. O"Brien

  • 118 Want to read
  • 35 Currently reading

Published by Massachusetts Institute of Technology in Cambridge, Mass .
Written in English

    Subjects:
  • Economic forecasting.

  • Edition Notes

    StatementPatricia C. O"Brien.
    SeriesWorking paper / Alfred P. Sloan School of Management -- WP #1743-86, Working paper (Sloan School of Management) -- 1743-86.
    ContributionsSloan School of Management.
    The Physical Object
    Pagination61 p. ;
    Number of Pages61
    ID Numbers
    Open LibraryOL17874054M
    OCLC/WorldCa15514596

    and Hribar and Jenkins ), analysts’ earnings forecasts are often used as a proxy for longer-horizon earnings expectations, such as two- to five-year-ahead earnings. One notable exception is Allee () who utilizes exponential smoothing time-series forecasts for two-year horizons to estimate the firm-specific cost of equity Size: KB.   Zacks forecasts that Southern Company will grow earnings at 5% per annum rate over the next five years. Zacks also reports that consensus' expectations of earnings per share for fiscal and Author: Chuck Carnevale.

    Abstract. This paper investigates whether firms achieve greater share value, all else equal, by meeting analysts' expectations. We hypothesize that such firms may be rewarded with higher earnings forecasts that lead to higher share values, or with higher share prices controlling for analysts' by:   Over this time frame, actual earnings growth surpassed forecasts in only two instances, both during the earnings recovery following a recession (Exhibit 2). On average, analysts’ forecasts have been almost percent too high. 6 6.

      Macy’s earnings trend. Macy’s exceeded analysts’ earnings expectations in each of the first three quarters of fiscal The company’s adjusted EPS of $ in . Finally, we investigate whether the stock market is fixated on analysts’ aggregate earnings forecasts in forming its aggregate earnings expectations. We find that the market returns surrounding earnings announcements of the first few "bellwether" firms are significantly more negative in quarters following worse macroeconomic news.


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Analyst"s forecasts as earnings expectations by Patricia C. O"Brien Download PDF EPUB FB2

See Facebook, Inc. (FB) stock analyst estimates, including earnings and revenue, EPS, upgrades and downgrades. Earnings forecasts are based on analysts' expectations of company growth and profitability.

To predict earnings, most analysts build financial models that estimate prospective revenues and : Ben Mcclure. Analysts'ForecastsasEarningsExpectations PatriciaC.O'Brien MassachusettsInstituteofTechnology DecemberI SecondDraft CommentsWelcome.

Excerpt from Analysts' Forecasts as Earnings Expectations A third contribution of this paper is a methodological refinement of the techniques used to evaluate forecastsp I demonstrate the existence of significant time-period - specific effects in forecast errors.

If time~series and cross-section data are pooled without taking these effects into Cited by:   Analyst's Forecasts as Earnings Expectations Paperback – Decem by O''Brien Patricia C.

(Creator) See all 16 formats and editions Hide other formats and editions. Price New from Used from Format: Paperback. Journal of Accounting and Economics 10 () North-Holland ANALYSTS' FORECASTS AS EARNINGS EXPECTATIONS* Patricia C. O'BRIEN Massachusetts Institute of Technology, Cambridge, MAUSA Received Marchfinal version received June I examine three composite analyst forecasts of earnings per share as proxies for expected by: SeeInc.

(AMZN) stock analyst estimates, including earnings and revenue, EPS, upgrades and downgrades. ecasterrore^jtTisdefinedasthedifference betweenAjt, actualearningspershare(EPS)3offirmjinyear t,andfjjtT't'ieforecastofEPSfromsourcei,atahorizont priortotherealization: eijtx=Ajt-fijtT (3) Thesourceoftheforecast,denotedbyi,isoneofthe following:themean,themedian,orthemostcurrentofasetof analysts'forecasts.

Analysts forecasts as earnings expectations book Analyst Expectation: A report issued by an individual analyst, investment bank or financial services company indicating how a particular company's stock will Author: Julia Kagan.

Analysts' forecasts as earnings expectations. by O'Brien, Patricia C.,Sloan School of Management. Share your thoughts Complete your review. Tell readers what you thought by rating and reviewing this book.

Rate it * You Rated it *. management forecasts in order to manage earnings expectations. Such expectations management can result in a more efficient alignment of managers’ and the market’s outlook (Ajinkya and Gift ).

Analysts’ earnings forecasts are commonly used to proxy for the market’s earnings expectations in the management forecast literature. Prior research also suggests that managers use non-GAAP earnings to appear to meet analysts’ forecasts when GAAP earnings fall short of expectations.

For example, when GAAP earnings miss analysts’ forecasts, managers can use non-GAAP exclusions to calculate a metric that exceeds analysts’ by: 6. Full text of "Analyst's forecasts as earnings expectations" See other formats Dewey iwsr.

FEB 5 WORKING PAPER ALFRED P. SLOAN SCHOOL OF MANAGEMENT ANALYST'S FORECASTS AS EARNINGS EXPECTATIONS Patricia C. O'Brien WP// revised March MASSACHUSETTS INSTITUTE OF TECHNOLOGY 50 MEMORIAL DRIVE. CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): This paper addresses the question of whether market participants ’ expectations efficiently reflect the earnings quality implications of book-tax differences.

Because investors ’ earnings expectations are not directly observable and predictable stock returns may reflect either risk or mispricing. Because investors' earnings expectations are not directly observable and predictable stock returns may reflect either risk or mispricing, this study exploits the forecasts of financial analysts.

Analysts’ earnings forecasts are important benchmarks for managers because investors and other stakeholders care about firms meeting-or-beating analysts’ earnings forecasts (MBE).

analysts who issue more accurate earnings forecasts and who use a rigorous valuation approach like RIM will also issue superior price targets. 2 The PEG ratio is equal to the price-to-earnings (P/E) ratio divided by the analysts’ forecasted long-term earnings growth Size: KB.

percentage of analysts’ earnings forecasts that are accompanied by cash flow forecasts has increased from 1% in to 32% in Two main areas of research have emerged on analysts’ cash flow forecasts. The first focuses on the firm specific and analyst specific determinants of analysts’ Analysts’ earnings and cash flow File Size: KB.

Earnings Expectations: The Analysts' Information Advantage William Kross Byung Ro Purdue University Douglas Schroeder The Ohio State University SYNOPSIS: This research investigates the degree to which the superiority of analysts' earnings forecasts (relative to a univariate time-series model) is associated with certain firm characteristics.

In particular, hard information signals that are not good predictors of future earnings do in fact explain long-term earnings forecasts as well as forward earnings-to-price ratios.

They added: Our results suggest that analysts make mistakes when interpreting the persistence of accounting information while setting growth expectations. Can Stock Recommendations Predict Earnings Management and Analysts’ Earnings Forecast Errors? Abstract In this paper we present evidence that a firm’s st ock price sensitivity to earnings news, as measured by outstanding stock recommendation, affects its incen tives to manage earning s and, in turn, affects analysts’ ex post forecast by: To our best knowledge, individual earnings forecasts have not been used thus far to study how macroeconomic news relate to market participants’ earnings expectations.

The only exception is Boyd, Hu and Jagannathan (), who focus on long term earnings growth forecasts but find no statistically significant influence. This paper examines whether analysts’ pre-tax income forecasts mitigate the tax expense anomaly documented by Thomas and Zhang (J Account Res –, ).

They find that seasonal changes in quarterly income tax expense are positively related to future returns after controlling for the earnings surprise and conclude that investors underreact to value Cited by: 3.