Another 30 years later, Mark Bagnoli, Mesod Daniel Beneish, and Susan Watts published their paper "Whisper Forecasts of Quarterly Earnings per Share" pointing out that a stock's outperformance/underperformance after earnings has more to do with whisper numbers than consensus estimates. 35 years later, Ray Ball and Phillip Brown published their paper "An Empirical Evaluation of Accounting Income Numbers" identifying the phenomenon of Post-Earnings Announcement Drift (PEAD), showing that stocks outperform the market after reporting earnings above earnings estimates and they underperform if they miss estimates. It has now been more than 80 years since Benjamin Graham and David Dodd published their book "Security Analysis" which was, in part, about the importance of properly measuring a company's earnings for proper stock selection.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |