Predicting Earnings? Odds Are You'll Whiff Since Most Forecasts Are Wrong: Study
Portfolio Pulse from Anthony Noto
A study surveying 357 CFOs and C-suite executives of publicly-traded companies in 2021 found that managers are overconfident and do a poor job of predicting earnings, with only 31% of historical estimates falling within their guidance range. This may explain why analyst earnings estimates are often inaccurate.
May 25, 2023 | 8:55 pm
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NEUTRAL IMPACT
Salesforce Inc's earnings are set to be announced on May 31, with analysts estimating $1.49 earnings per share. The study's findings on inaccurate predictions may impact the accuracy of this estimate.
The study highlights the inaccuracy of earnings predictions by managers and analysts. While Salesforce's earnings announcement is imminent, the study's findings may cast doubt on the accuracy of the $1.49 EPS estimate.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Jefferies' price target for Sherwin-Williams Co at $275.00 may be overestimated due to the study's findings on inaccurate earnings predictions by managers and analysts.
The study indicates that managers and analysts often make inaccurate earnings predictions. This may impact the accuracy of Jefferies' price target for Sherwin-Williams, potentially leading to an overestimation.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50