What is an Earnings Estimate?
Analysts come up with an earnings estimate for a company that details what the analyst expect for future quarterly or yearly earnings. Earnings estimates are often shown on websites such as FINVIZ, Yahoo! Finance, and through your online broker. Earnings estimates come in handy in fundamental analysis to value a company. Combined with analysis techniques like discounted cash flow analysis (DCF), earnings estimates help analysts determine a price target for the company's stock.
Why You Care
Investors use the earnings estimate as part of the fundamental analysis (analyzing the company, not the stock price moves) when deciding whether to buy a stock or not. Traders can get a sense of the company's performance and these earnings estimate are a point of reference.
Proprietary Trading Desk (Prop Desk),
Hedge Fund Firm,
Earnings Disappointment (Miss),
Earnings Surprise (Beat),
Quarterly Earnings Report,
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