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Most companies usually beat expectations

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TKer Notes (Beta)

Most companies usually beat expectations

On average, 74% of S&P 500 companies beat analysts' estimates

Sam Ro, CFA
Oct 31, 2022
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Most companies usually beat expectations

www.tker.co

During quarterly earning season, much is made about whether or not companies report earnings that beat analysts’ expectations.

As you can see from the chart above from Deutsche Bank’s Binky Chadha, most companies usually beat expectations.

Over the past 16 years, an average of 74% of S&P 500 companies have beat quarterly earnings expectations. This beat rate never fell below 63% in any single quarter.

Some of this can be explained by companies managing analysts’ expectations so that they set the bar low.

For more on this, read:

  • 'Better-than-expected' has lost its meaning 🤷🏻‍♂️

  • The truth about analysts' deteriorating expectations 📉


🙋🏻‍♂️You’re looking at an entry for TKer Notes, a new offering I’m currently exploring for subscribers. TKer Notes would be a place where I’d compile all the eye-catching, thought-provoking stuff I come across. It wouldn’t necessarily come with the context you get with TKer’s main newsletter offerings. Writing a whole newsletter takes time!

If this were something I moved forward with, you’d be able to subscribe to it separately (because I know the last thing many of us need are more emails). As always, everything I do is informed by your feedback. If you have a second, check out TKer Notes. And share your thoughts with me at sam@tker.co.

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Most companies usually beat expectations

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