January 14, 2019

StarMine Models Pick North American Companies for 18Q4 Earnings Misses

by David Aurelio.

The StarMine team has selected five North American companies, using Eikon Screener by Refinitiv, that we expect to miss 18Q4 earnings estimates, based on SmartEstimate® and Predicted Surprise data.

Our North American selections for 2018 Q3 negative Predicted Surprises were 80% accurate, which can be seen here. Historically (since 2011 Q4), our negative Predicted Surprise picks have demonstrated an accuracy rate of about 65.9%, giving investors an edge ahead of earnings announcements.

Our North American picks for negative Predicted Surprises in 2018 Q4 are — Resolute Energy Corp (REN.N), Western Digital Corp (WDC.O), Coherent Inc (COHR.O), Visteon Corp (VC.O), and Patrick Industries Inc (PATK.O).

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

Resolute Energy Corp (REN.N)

Western Digital Corp (WDC.O)

Coherent Inc (COHR.O)

Visteon Corp (VC.O)

Patrick Industries Inc (PATK.O)

Interested in learning how you can use the StarMine SmartEstimate® and Predicted Surprise® to avoid earnings misses and find earnings beats? Learn more here.

Republication or redistribution of Reuters content, including by framing or similar means, is prohibited without the prior written consent of Reuters. Reuters and the Reuters logo are registered trademarks, and trademarks of the Thomson Reuters group of companies. For additional information on Reuters photographic services, please visit the web site at http://pictures.reuters.com

Get In Touch