Biggest One-Month Changes in EPS Estimates

We're currently in the earnings off-season, which is a time when companies issue guidance for the upcoming quarter. Analyst coverage ramps up during this guidance period, and below we highlight the stocks in the S&P 500 that have seen the biggest one-month changes in their earnings per share estimates for the third quarter. As shown below, Lennar Corp (LEN) has seen the biggest increase in estimates ($0.20), followed by FCX, MI, CSC, CEG, EL, PNW, and WY. Other notables on the list of the biggest increases include HPQ, WYNN, GS, and JWN.

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Boeing has seen its EPS estimate cut the most at -$1.46. AIG has seen a cut of -$0.44, while DE, SLM, GT, SUN, SHLD, and C are other notable names on the list.

Comments

[whidbey:]

We have no idea what lies behind these numbers besides hope.

The EPS estimates are themselves manipulated to surprise and please the analysts and investors (understated). That they are rising a little is no surprise, especially if a firm is looking at a secondary offering or selling debt. No sell.

Sep 04 04:38 PM

[LKofEnglish:]

hate to have to buy high such that the market goes higher but there it is. a one day sell off? maybe it's NEXT week that the "pros" finally return.

Sep 04 10:10 PM

[JeffDB:]

I wonder if those estimates for GS take into account the potential problems of Chinese default on derivatives.

From an article here a couple of days ago:

seekingalpha.com/artic...

"China announced over the weekend that State Owned Enterprises (SOEs) will be allowed to default on commodity derivative contracts.

Default

The report cited six foreign banks that recieved letters that the SOEs reserved the right to default on contracts ... Among the major derivative providers in China are Goldman Sachs (GS), UBS (UBS), Morgan Stanley (MS) and JPMorgan (JPM).
...
If China carries through on its announcement, it would set a precedent that could seriously undermine the derivatives market, at the same time impacting fractional investment as well.

Potential default was the concern that prompted the fiscal crisis in the fall of 2008 as massively intertwined derivatives and speculative CDSs and CDOs began to fall apart. If China were to succeed in walking away from derivatives contracts, it could have a significantly bigger impact on the financial world. Remember that AIG unwound many of it's investments at face value thanks to massive taxpayer infusions which helped prop up other "too big to fail" banks. It looks like some of those banks may be involved in the latest Chinese finger trap."

Sep 06 01:15 AM