I had 2 quick questions about updating earnings models.
1. Typically what does "updating an earnings model" entail? Is it simply adding the quarterly results into the financial statements?
2. Say I was trying to build a model and eventually pitch a stock for it. How do I account for a recent earnings report? For example, how do I calculate multiples like/ or even when all I have is the last year and 2 quarters into the next year? Do I project for the rest of the year?
Thanks so much... really would appreciate the help..