Equity analysts provide regular forecasts each quarter of a company's performance across key financial metrics (such as revenue and profitability).
If a company's actual results miss the forecasts for that quarter, it usually leads to a decline in the company's share price (all else being equal).
Consequently, a company's management are acutely aware of the importance of meeting or exceeding analyst forecasts.
In Databook, we provide insights into the likelihood of companies being able to meet these analyst forecasts.
To see these insights:
- Search for a company
- Select Value Drivers from the menu on the left
- Choose the Revenue Growth or Profitability insights from the list.
- Read the Key Takeaway section for these insights, which explains Databook's analysis of whether the company is likely to meet analyst forecasts.
We generate these insights by looking at the improvement that is necessary to meet the forecasts and compare it to the company's performance in recent years (usually the past three years).
You can find out more about the data Databook uses to generate insights from here.