The quarterly cycle of analyst Earnings Estimates and company Earnings Reports can be an important driver of stock price activity. Chaikin Analytics presents Earnings Per Share (EPS) information in multiple places — this section will explain where this data comes from, how it is processed for display, and how you can use it to improve your investment decisions.
Source
Chaikin uses Earnings information from S&P.
Chaikin's EPS calculation is slightly different from the ones shown in typical financial websites. This is because Chaikin reports the "normalized" EPS. That is, the data is normalized to remove events that aren't expected to consistently contribute to earnings. For example, things that only happen once, like the sale of a building. While this definitely would increase the earnings, it's only a one-time effect, since businesses can't sell the building again next year. Removing the sale of the building, (ie taking the normalized earnings) allows you to make a true comparison of a company's earnings over time. If the normalized values have decreased over time, you can suspect that something is happening with the core of the business.
S&P
Earnings and Estimate data displayed in most Chaikin applications is sourced from S&P
We receive 3 types of Earnings-related information from S&P:
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Quarterly Earnings Reports are processed nightly. They include newly reported EPS values for the current quarter and fiscal year, and are used to generate:
- Earnings Surprise Hot Lists
- Earnings Icons
- Earnings information in the Chart Header.
- Earnings Surprise Alerts.
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Consensus Estimate Revisions are processed nightly. These include changes to the average Analyst EPS Estimate for the current reporting quarter. (We do not process estimates from individual analysts.) These are used to generate:
- Earnings Estimate Icons
- Earnings Revision Alerts
- Earnings Revision Hot Lists.
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Company Fundamentals. Basic company fundamental information – including current and historical EPS and Estimate data – is updated daily prior to market open. It is used for:
- Stock Detail in the Chart Header
- Historical Earnings on the Chart
- Tables in Power Gauge Reports and Portfolio Health Check
- Earnings Report Dates in the Screener.
S&P Compustat
Data used in the Chaikin Power Gauge model is provided by our portfolio modeling vendor Portfolio123, which sources its data from S&P Compustat. Information is updated daily after each trading day, prior to the next market open, and is used to generate:
- Inputs to the Chaikin Power Gauge stock rating
- Power Gauge component and factor “slider” displays
- Language derived from factor values in Chaikin Power Gauge Reports.
Earnings Alerts
Earnings Reports and Consensus Estimate revisions generate Alerts, which are shown in the Alert Window accessible from the EPS icon in the Watchlist:
Bullish & Bearish Earnings Surprises. Companies which have reported quarterly EPS different from the analyst consensus estimate, since the last trading day.
Bullish & Bearish Estimate Revisions. Companies whose consensus earnings estimate for the upcoming quarter has changed (by at least $.02 and 2%), since the last trading day.
These Alerts should be considered a “call to attention”, if you own or are considering trading a stock. They are described in depth in the Watchlist section.
Earnings Hot Lists
The “Chaikin Hot Lists” section of the List Navigator contains an “Earnings Hot Lists” folder with lists of stocks triggering Bullish & Bearish Earnings Surprises and Estimate Revision Alerts today.
Note: Hot Lists are updated once a day before the open; stocks which have triggered Earnings Surprises during the trading day will not be included, though these will show in the Alerts Window. Hot Lists also check to ensure a stock has had a valid Power Gauge Rating for at least 3 months, while Alerts do not.
The Earnings Hot Lists folder also contains an Upcoming Earnings Ideas list. These are manually selected stocks reporting Earnings this week (updated Sundays).
Icons & Chart Header
The Watchlist and Panel View display icons to quickly identify stocks with Upcoming Earnings, Earnings Surprises, and Estimate Revisions, and relevant Earnings information will be shown in the Chart Header when you chart a stock.
Note: To see Earnings info in the Chart Header, widen your browser. If a stock does not have a valid Next or Last Report Date, you will see “No earnings data.” (this includes ETFs).
Upcoming Earnings
A grey EPS icon indicates a stock reporting Earnings today or tomorrow.
It may be accompanied by a Bullish or Bearish Warning (“!”).
Hover over the icon to see information about a stock’s upcoming Earnings.
The top section shows Next Report Date, Fiscal Quarter, and Quarterly Consensus Estimate for the upcoming Earnings Report, and Year Ago Quarterly EPS.
If there is a green or red Warning icon (“!”), there will be a message explaining it:
A Bearish Warning ahead of Earnings can be triggered by:
- Power Gauge Earnings Surprise or Estimate Trend factor being Very Bearish (bottom 20% of the Russell 3000)
- A recent drop in the Consensus Estimate or average Analyst Rating.
A Bullish Warning ahead of Earnings can be triggered by:
- Power Gauge Earnings Surprise or Estimate Trend factor being Very Bullish (top 20% of the Russell 3000)
- A recent increase in the Consensus Estimate or average Analyst Rating.
Chart Header
Generally, when you chart a stock, you will see info about the stock’s upcoming Earnings report in the Chart Header:
- Report Date
- Fiscal Quarter reported
- Consensus Earnings Estimate for current quarter.
Hover over the “EPS” icon to see Upcoming Earnings detail.