An earnings estimate is an analyst's estimate for a company's future quarterly or annual earnings per share.
| Term of the Day | Words to Know | | | | Earnings Estimate | An earnings estimate is an analyst's estimate for a company's future quarterly or annual earnings per share (EPS). Future earnings estimates are arguably the most important input when attempting to value a firm. By placing estimates on the earnings of a firm for certain periods (quarterly, annually, etc.), analysts can then use cash flow analysis to approximate fair value for a company, which in turn will give a target share price. | Read More » | Related to "Earnings Estimate" | | SPONSORED BY INVESCO | The Complete Guide to ETFs | ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. | Learn More » | | Earnings Per Share | Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serve as an indicator of a company's profitability. | Read More » | | Fair Value | Fair value in the investing world is an asset's sale price, agreed upon by the seller and buyer exchanging it; in the accounting world, it's the estimated worth of various assets and liabilities. | Read More » | | Guidance | Guidance is information that a company provides as an indication or estimate of its future earnings. | Read More » | | Earnings Surprise | An earnings surprise occurs when a company's reported quarterly or annual profits are above or below the analysts' expectations. | Read More » | | | | | CONNECT WITH INVESTOPEDIA | | | | | |
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