Earnings Estimates Questions

Hey guys, I'm trying to do a bit of research into what tends to make share prices move significantly following the release of earnings reports.

  1. Could someone refer me to a source where I could quickly gather earnings estimates from a number of different analysts?
  2. Also, assuming what drives share prices following the release of earnings reports is the difference between analyst/market expectations and reality, are there certain industries that tend to be notoriously difficult to predict earnings for (such that the companies within said industry tend to move more than average based on earnings reports)?
  3. Does it seem like a fair assumption that huge companies in the S&P 500 would tend to move more based on earnings reports than lower cap ones due to the difference in attention paid to these earnings report releases?

Thanks in advance.

2 Comments
 
Best Response
1. Could someone refer me to a source where I could quickly gather earnings estimates from a number of different analysts?

Factset, Bloomberg, Capital IQ. Yahoo Finance is probably the only free source but it would be a PITA to collect the data.

2. Also, assuming what drives share prices following the release of earnings reports is the difference between analyst/market expectations and reality, are there certain industries that tend to be notoriously difficult to predict earnings for (such that the companies within said industry tend to move more than average based on earnings reports)?

Tech, biotech, consumer discretionary to name a few. However, investors in these industries are generally aware that quarterly earnings are volatile, so actually these industries are probably less sensitive than you think. A bigger move would come from a "stable" company such as a consumer staple or utility significantly beating or missing earnings.

3. Does it seem like a fair assumption that huge companies in the S&P 500 would tend to move more based on earnings reports than lower cap ones due to the difference in attention paid to these earnings report releases?

Not sure. There is a lot less coverage of smaller companies and the quality of coverage tends to be lower, so consensus for these companies may not be that meaningful.

 

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