Expert: k kemper Date: 1/21/2005 Subject: Earnings reports
Question -------------------------
Followup To
Question -
When a company misses the earnings estimate of "the street", why is the estimate never questioned for accuracy?
Answer -
why r u supposing it is never questioned?
btw--a guess is for the future, an income statement
and balance sheet are for fact.
does that help?
Well, no. I agree with your answer but, for example, E-Bay is being hammered today for missing the estimate by a penny. I have never heard any of the talking heads on TV express any doubt as to the accuracy of the estimate, only the fact the company(s) missed it.
Answer there are 3 types of stock market investors;
long term 10+ yrs
intermediate who follow industries
daily for instant gains
if someone is buying and selling ebay on a daily basis
then these hints of tomorrow's book values, stock
values, etc., are of some value.
I studied that years ago and outsider's and even
insider's points re "will they reach their net profit
goals" have no meaning to anyone but--the inside
employees AND those who buy based on dividends.
MOST companies pay out dividends based on net profits.
