EARNINGS FORECAST
All public companies provide a forecast for at least the next quarter. Professional analysts spend significant time preparing their own pro-forma forecasts and estimating the EPS for the company. Multiple analysts’ results are then combined to arrive at an "average" that becomes the "analysts’ expectations". Company's try very hard to meet the analysts estimate - beating the estimate can make the stock increase in price, but not meeting the expectations by even a few cents may cause the stock price to drop significantly. Remember that its an average - some had it higher, others lower.
Using your company from Week 1 (or choose another)
EARNINGS FORECAST
1. Create a table with the analysts’ expectations from the previous quarter (or period) and the actual results (requires external research).
2. How did they perform? why did they do better or worse than expected? How did this impact their stock price?
3. Add to your table the expected results for the next quarter (or period). Is the forecast aggressive? Where are they making the biggest changes?
CASH CONVERSION CYCLE
1. Using the ratios in the table below, calculate the cash conversion cycle for your company for the past two years
2. How well does your company manage their cash conversion cycle?
Sample Solution
Analysts' projections for corporate growth and profitability are used to forecast earnings. Most analysts use financial models to forecast results. These models estimate future revenues and costs. Many analysts may consider in top-down elements that drive company growth, such as economic growth rates, currencies, and other macroeconomic factors. Market research reports are used to determine underlying growth trends. Really good analysts will speak with customers, suppliers, and competitors to have a better understanding of the dynamics of the companies they monitor. Analysts incorporate earnings guidance provided by the corporations into their models. Analysts assess sales volume growth and the prices companies can charge for products to forecast revenue.
n has been raised at the rate of progress and the widespread implementation of the use of technologies in school setting in the absence of evidence regarding their benefits (Durham University (2006). In this context this study will explore the current literature that has investigated the use and effectiveness of ICT in PE lessons. Additionally, this study will explore the teachers views on ICT in PE and their own use of technology in Physical Education lessons.