Consensus Estimate

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Dictionary Says

Definition of 'Consensus Estimate'

A figure based on the combined estimates of the analysts covering a public company. Generally, analysts give a consensus for a company's earnings per share and revenue; these figures are most often made for the quarter, fiscal year and next fiscal year. The size of the company and the number of analysts covering it will dictate the size of the pool from which the estimate is derived.
Investopedia Says

Investopedia explains 'Consensus Estimate'

When you hear that a company has "missed estimates" or "beaten estimates", these are references to consensus estimates. Based on projections, models, sentiments and research, analysts strive to come up with an estimate of what the company will do in the future.

Obviously, consensus estimates are not an exact science. This leads some market pundits to believe that the market is not as efficient as often purported, and that the efficiency is driven by estimates about a multitude of future events that may not be accurate. This might help to explain why a company's stock quickly adjusts to the new information provided by quarterly earnings and revenue numbers when these figures diverge from the consensus estimate.
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'Consensus Estimate'

  • Strategies For Quarterly Earnings Season

    http://www.investopedia.com/articles/stocks/06/quarterlyearningsstrategies.asp
    ... earnings reporting season. Remember, the consensus estimate is basically
    an aggregation of individual forecasts. It may not capture ...

  • The Impact Of Sell-Side Research

    http://www.investopedia.com/articles/stocks/10/impact-of-sell-side-research.asp
    ... During earnings season, these news programs often discuss consensus numbers, usually
    comparing an actual company financial report to the consensus estimate. ...

  • Whisper Numbers: Should You Listen?

    http://www.investopedia.com/articles/02/012302.asp
    ... that you see in the newspaper, online or on TV are usually compiled by these firms,
    and are often reported as an average, or what is called a consensus estimate ...

  • Can Good News Be A Signal To Sell?

    http://www.investopedia.com/articles/stocks/07/sell-on-news.asp
    ... At first blush, they appeared to be good news. The company earned $0.66 per share
    and beat the average consensus estimate by $0.03 per share. ...

  • Can Earnings Guidance Accurately Predict The Future?

    http://www.investopedia.com/articles/analyst/03/012903.asp
    ... Today, if a company misses the consensus estimate by a penny, its stock could suffer
    or soar, depending on whether the miss was negative or positive. ...

  • Can Earnings Guidance Accurately Predict The Future?

    http://www.investopedia.com/articles/analyst/03/012903.asp?viewall=1
    ... Today, if a company misses the consensus estimate by a penny, its stock could suffer
    or soar, depending on whether the miss was negative or positive. ...

  • Do-It-Yourself Analyst Predictions

    http://www.investopedia.com/articles/07/mosaic-theory.asp
    ... potential new distribution channels can still help individual investors determine
    if the company has a chance of beating the current consensus estimate on the ...

  • 3 Not-So-Famous Stocks That Deserve The Spotlight

    http://stocks.investopedia.com/stock-analysis/2010/3-Not-So-Famous-Stocks-That-Deserve-The-Spotlight-HELE-HIBB-SKWS0322.aspx
    ... sales. Hibbett says it expects to earn between $1.12 and $1.30 a share for
    fiscal 2011 while the consensus estimate is $1.18 a share. ...

  • CH Robinson Worldwide: Take The Long Way Home

    http://stocks.investopedia.com/stock-analysis/2012/C.H.-Robinson-Worldwide-Take-The-Long-Way-Home-CHRW-UPS-FDX-EXPD0206.aspx
    ... quarter of 2010. Revenues missed the Zacks consensus estimate by $50 million
    and earnings per share missed by a penny. As a result ...

  • Earnings Forecasts: A Primer

    http://www.investopedia.com/articles/stocks/06/earningsforecasts.asp
    ... judged not only by their ability to increase earnings quarter over quarter, but
    also by whether they are able to meet or beat a consensus earnings estimate. ...

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