What is an Earnings Estimate?
An earnings estimate is an estimate of a company's future quarterly or annual profits by a market analyst.
How Does an Earnings Estimate Work?
Earnings estimates are created by analysts who work for investment research companies.
The analyst will research a company's operations, evaluate management's guidance, study the company's operations, and also take into account macroeconomic factors, among other items.
Then the analyst will use this information to make an estimate of the amount the company will earn per share over the next quarter or year.
Why Does an Earnings Estimate Matter?
Earnings estimates are an important predictor of the future growth of a company and thus a useful tool for both current and potential investors when deciding whether to buy or sell stock.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.