Earnings Estimate

Dictionary Says

Definition of 'Earnings Estimate'

An analyst's estimate for a company's future quarterly or annual earnings. Future earnings estimates are arguably the most important input when attempting to value a firm. By placing estimates on the earnings of a firm for certain periods (quarterly, annually, etc), analysts can then use cashflow analysis to approximate a fair value for a company, which in turn will give a target share price for publicly traded companies.
Investopedia Says

Investopedia explains 'Earnings Estimate'

Analysts use forecasting models, management guidance and fundamental information on the company in order to derive an estimate. Market participants rely heavily on earnings estimates to gauge a company's performance when announcing quarterly or annual results. The analysts' earnings estimates are used as a benchmark to measure a firm's performance relative to how experts expected it would do.

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Related Definitions

  1. Earnings Announcement

    An official ...
  2. Earnings

    The amount of ...
  3. Earnings Per Share - EPS

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  4. Earnings Surprise

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  5. Guidance

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  6. Institutional Brokers' Estimate ...

    A system that ...
  7. Consensus Estimate

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  8. Earnings Recast

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  9. Analyst Expectation

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  10. Forward Looking

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Articles Of Interest

  1. Strategies For Quarterly Earnings Season

    Breeze through consensus estimates like the biggest Wall Street forecasters.
  2. Can Earnings Guidance Accurately Predict The Future?

    Explore the controversies surrounding companies commenting on their forward-looking expectations.
  3. Getting The Real Earnings

    EPS helps investors analyze earnings in relation to changes in new-share capital.
  4. Whisper Numbers: Should You Listen?

    These unofficial forecasts hold the potential for insider insight - and investment risk.
  5. One of my stocks missed the deadline to file its quarterly financial statements. What happens next?

  6. Revenue Projections Show Profit Potential

    Examining how a company makes money can offer clues about its earnings potential.
  7. Spotting Profitability With ROCE

    This straightforward ratio measures whether a company is efficient, money-making or neither.
  8. Analyze Cash Flow The Easy Way

    Find out how to analyze the way a company spends its money to determine whether there will be any money left for investors.
  9. Digging Into Book Value

    This calculation will serve up your portion of the shareholder pie.
  10. Analyzing Retail Stocks

    To analyze retail stocks, investors need to be aware of the most common metrics used. Find out what they are.

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