The Earnings Calendar just got better on TipRanks, adding new functionality and data that subscribers asked for. Estimates are a key component in determining and measuring a stock’s value. Upcoming earnings reports are just one way to screen for investment ideas.
Starting with the new graphic visualization of earnings data, investors are now able to see important particulars about the earnings report. By clicking on each bar of the Earnings History timeline chart, users see the specific report date, earnings per share reported, the consensus EPS prior to the report, and, the percentage of surprise between the two figures.
Future earnings estimates are arguably the most important input when attempting to value a stock, according to Investopedia. Through their estimates, analysts can then use cash flow analysis to approximate a fair value for a company, which in turn will give a target share price.
Consensus estimates help investors understand a company and its shares because they reduce the risk of any single analyst making an incorrect forecast. The consensus can provide a hint to what is on investors’ minds, as interpreted by the analysts following a stock. That consensus can also be used to assess how well analysts and investors understand the drivers of a company’s performance.
An earnings surprise occurs when a company’s reported quarterly or annual profits are above or below analysts’ expectations. Earnings surprises can have a huge impact on a company’s stock price. Research suggests that a positive earnings surprise not only leads to an immediate boost to a stock’s price, but also to a gradual increase over time. A negative earnings surprise often drives down share price.
Smart Portfolio users can add stocks to their holdings or watch lists with a single click on a button, a function that makes tracking investment ideas all the easier. For mobile users, the Earnings Calendar now has a responsive view option that shows the earnings history graph while on the go, providing filtering options to screen stocks by market cap, sector, and buy-sell consensus.
Check out the Earnings Calendar tool to get a view of company performance that you can use in your own investment strategy.