In S&P 500 Companies With the Most Misleading Street Earnings, we show the record earnings beats for 1Q21 are misleading, and the Core Earnings of the S&P 500 have not rebounded as strongly as unscrubbed EPS suggest.
In theory, Wall Street analysts adjust Street EPS for unusual gains and losses that distort corporate EPS. In reality, they do not, and Street EPS are materially overstated. We expect companies to continue overstating EPS as they take advantage of the post-COVID-19 euphoria and sneak unusual gains into their results.
This report provides unprecedented insights into why Street Earnings (and GAAP earnings) are flawed measures of earnings, and we highlight five S&P 500 companies likely to beat their calendar 2Q21 Street EPS estimates based on our proprietary Core Earnings research[1]. Clients can get our report on “S&P 500 Companies Likely to Miss Wall Street’s 2Q21 EPS Estimates” here.
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