In October 2022 we published our 22Q3 earnings surprise candidates based on StarMine predictive analytics. Using the Russell 1000 Index as our universe, our 22Q3 earnings surprise predictions scored 80% correct. The StarMine SmartEstimate®  is a weighted average of analyst estimates, with more weight given to more recent estimates and more accurate analysts. Our research has shown that when the SmartEstimate® differs significantly from the consensus (I/B/E/S Mean), the Predicted Surprise accurately predicts the direction of earnings surprises or further revisions 70% of the time. When significant Predicted Surprise for revenue is also present for the period, the accuracy improves to 78%.

Earnings season kicks off next week and will provide further insight to a myriad of questions – will companies continue to report beats and surprises to the upside? Can companies continue to maintain record-high margins? Will forward earnings estimates start to reflect the economic reality of higher interest rates and a potential recession? 22Q3 earnings are forecasted at $465.32 billion (+4.5% y/y, -1.7% q/q) while revenue is forecasted at $3,644.1 billion (+9.7% y/y, -0.5% q/q).  While year-over-year growths remain in positive territory, analysts have downgraded both earnings and revenue growth expectations heading into earnings season. Earnings growth has come down

Okay, to be fair, while we enjoy an occasional pun, Rio Tinto is not in a hole – it remains nicely profitable, with positive free cash flows, high dividend yield, and a strong balance sheet. However, against a backdrop of weakening demand and lower commodity prices, analysts have been cutting their estimates on the company. The StarMine Analyst Revisions Model (ARM) from Refinitiv provides a rapid signal to users of significant changes in analyst sentiment, as represented by estimate revisions and/or recommendation changes. Australian-listed mining company, Rio Tinto (RIO.AX) is highly exposed to iron ore prices. As you can see

The consumer technology industry is facing headwinds. Consumer demand appears to be weakening alongside an economic slowdown. Channel inventories are on the rise. Covid-19 related lockdowns are creating supply chain problems within and from China. Higher semiconductor and component prices are increasing margin pressures and a stronger U.S. dollar isn’t helping. In this update, we’ll demonstrate how these developments have changed the sell-side outlook for two companies: Tokyo Stock Exchange listed Sharp Corp (6753.T) and Hong Kong listed Lenovo Group Ltd (0992.HK) and how the StarMine Analyst Revisions Model (ARM) from Refinitiv provided a rapid signal to users of significant

Due to inflation, several retailers are already dealing with higher cost of goods and services (COGS) – and dealing with the supply chain crisis. They just finished reporting Q3 earnings; 141 retailers have already discussed inflation worries, and 192 have mentioned the supply issues during their earnings calls. Consumers’ short-term inflation expectations rose again, with the median cost of living increase for next year pushing up from 5.7% to 6.0%. This increase is twice the pace of expectations for income growth, which slid to 2.8% from 3.0%, according to the New York Federal Reserve. As a result, the latest Ipsos

Investors eagerly await the unofficial kickoff to 2020’s third quarter earnings season during the week of October 12. This comes at a time of heightened volatility where the S&P 500 index (.SPX) climbed 15.73% between the June 30 close and September 2 all-time high of 3,588.11 before falling 10.55% to the September 24 low of 3,209.45. With the U.S. presidential election looming and an index that has rebounded 8.34% to 3,477.13 as of the October 9 close, the stakes are high heading into the 2020 Q3 earnings season. Adding to the pressure is a high bar set by multiple new

In last week’s post titled “Benefiting from the SmartEstimate during times of uncertainty”, we highlighted Zalando (ZALG.DE) as a company that had a strong positive StarMine Predicted Surprise for both FY2020 and upcoming 20Q2 earnings release. Zalando reported 20Q2 earnings on August 11 and beat earnings expectations, posting an actual result of €0.47 vs consensus of €0.45, resulting in a 5.62% surprise factor. As a reminder, the SmartEstimate can be seen as a leading indicator that is predictive of future analyst revisions. For customers who wish to look for companies with positive analyst sentiment, we can use the Eikon screener

Break out semiconductors’ new liquid cooler systems because this sector is scorching hot. The Republic of Korea dominates one of the hottest markets in this space: memory production. This article takes a look at one of Korea’s pure play producers, SK Hynix Inc. (000660.KS), to find out if analysts expect the memory cycle to end in a flash. Exhibit 1: SK Hynix Inc. Analyst Revision Model (ARM) Components A Perfect Storm A major shift in technology to 3D NAND is underway at a time when demand for memory is strong. Companies are reducing NAND and DRAM production to bring online and

Like an Olympic event, one of the more important technology earnings events of the quarter is just moments away and you want to tune in for this one. Applied Materials Inc. (AMAT.OQ) is expected to report earnings after the market close on Aug. 18 and there are several reasons you want to pay attention to their report, including insight into what to expect from Apple Inc. (AAPL.OQ) and Samsung Electronics Co. Ltd. (005930.KS). Will the momentum continue? Semiconductor capital equipment companies have seen large gains since the start of the year, with Applied Materials shares up 47.8% YTD, outperforming the