Corporate actions
Earnings revision
Analysts changing their forecasts for a company’s future earnings.
How it works
Revisions cluster: an analyst who cuts is usually followed by others. The direction of revisions has more predictive content than the level of estimates.
Persistent downward revisions are one of the clearest signals that a low valuation is a value trap rather than a bargain.
Related terms
- Consensus estimateThe average of analysts’ forecasts for a company’s revenue or earnings.
- Forward P/EPrice divided by the earnings analysts expect next year, rather than last year’s actual earnings.
- Value trapA share that looks cheap on the numbers and stays cheap because the business is deteriorating.
- Earnings surpriseThe gap between reported earnings and what analysts expected.
Mentioned in
More in Corporate actions
- Earnings announcement
- Ex-dividend date
- Dividend yield
- Dividend reinvestment
- IPO
- Dividend cut
- Lock-up period
- Dividend cover
All 26 Corporate actions terms · The full glossary, 433 terms
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