Whisper Number

Filed Under » ,
Dictionary Says

Definition of 'Whisper Number'

1. Traditionally, the unofficial and unpublished earnings per share (EPS) forecasts that circulate among professionals on Wall Street. In this context, whisper numbers were generally reserved for the favored (wealthy) clients of a brokerage.

2. A company's forecasted future earnings or revenues according to the collective expectations of individual investors. In this sense, a whisper number would be compiled by a website polling its visitors. Individuals come up with a whisper number using their own analyses of company financials, market trends, gut feel, etc.
Investopedia Says

Investopedia explains 'Whisper Number'

Whisper numbers are especially useful when they differ from the consensus forecast. They can be used as a tool to help spot (or avoid) an earnings surprise (or disappointment). Of course, this is only relevant if they are more accurate than the consensus estimate, and this depends on the sources used to calculate them.

Increased regulatory scrutiny on the brokerage industry made it much more difficult (if not impossible) to get a whisper number in the traditional sense. For example, regulations like Sarbanes-Oxley provided for stricter rules in how companies disclose financial data. Employees, financial professionals and brokerages face significant penalties if they provide insider earnings data to a select group of people. While it's impossible to know the extent to which whisper numbers still circulate among the wealthy, it's highly unlikely that a small investor could access this data. For these reasons, the newer definition (expectations of individuals) is of more relevance to regular individual investors.

Related Definitions

  •

    Earnings

    The amount of profit that a company produces during a specific period, which is usually defined as a quarter (three calendar months) or a year. Earnings typically refer to after-tax net ...
    Read More »

  • Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability.Calculated as:When ...
    Read More »

  • First Call

    A company that gathers research notes and earnings estimates from brokerage analysts. The estimate is compared to the actual reported earnings, and then the difference between the two is ...
    Read More »

    • Insider Information

      A nonpublic fact regarding the plans or condition of a publicly traded company that could provide a financial advantage when used to buy or sell shares of the company’s stock. Insider ...
      Read More »

    • Street Expectation

      The average earnings estimates made by brokers and securities analysts. Also known as the "market consensus" or "earnings expectations".
      Read More »

    • Whisper Stock

      Shares in a company that is rumored to be the target of a takeover offer. The source of whisper stocks could be anybody from an investment banker involved in a deal, to the spouse of an ...
      Read More »

    • Wall Street

      1. A street in lower Manhattan that is the original home of the New York Stock Exchange. The street is the historic headquarters of the largest U.S. brokerages and investment banks. Many ...
      Read More »

    • Sarbanes-Oxley Act Of 2002 - SOX

      An act passed by U.S. Congress in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations. The Sarbanes-Oxley Act (SOX) mandated strict reforms ...
      Read More »

    • Earnings Momentum

      When corporate earnings per share (EPS) growth is accelerating or decelerating from the prior fiscal quarter or fiscal year. Earnings momentum typically coincides with accelerating ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions