StarMine Models Pick North American Companies for 17Q4 Earnings Misses

The StarMine team has selected five North American companies, using Eikon Screener, that we expect to miss 17Q4 earnings estimates, based on SmartEstimate® and Predicted Surprise data.

Our North American selections for 2017 Q3 misses were 41.2 percentage points above the S&P 500’s 17Q3 earnings miss rate, which can be seen here. Historically (since 2011 Q4), our negative Predicted Surprise picks have demonstrated an accuracy rate of about 64.4%, giving investors an edge ahead of earnings announcements.

Our North American picks for negative Predicted Surprises in 2017 Q4 are — PG&E Corp (PCG.N), Expedia Inc (EXPE.O), Discovery Communications Inc (DISCK.O),  TransAlta Corp (TA.TO), GTT Communications Inc (GTT.N).

SmartEstimates® aim to provide earnings forecasts that are more accurate than I/B/E/S Consensus Estimates, by putting more weight on the recent forecasts of top-rated analysts. When SmartEstimates® diverge significantly from Consensus, you can anticipate the occurrence of earnings surprises with an accuracy rate of 70%. Revenue SmartEstimates® are even more predictive of surprises, with a historical accuracy rate of 78%.

Negative surprise predictions

PG&E Corp (PCG.N)

Expedia Inc (EXPE.O)

Discovery Communications Inc (DISCK.O)

TransAlta Corp (TA.TO)

GTT Communications Inc (GTT.N)

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Which 5 North American companies does our StarMine team predict will beat 17Q4 earnings expectations? Find out here.