Glossary of EPS & Earnings Revision Terms
Key definitions for understanding EPS revisions, consensus estimates, and earnings momentum investing. Use these as a reference when reading the daily screener results.
- Earnings Per Share (EPS)
- A company's net profit divided by its total number of outstanding shares. EPS is the primary metric analysts use to measure and compare company profitability. A rising EPS means the company is generating more profit per share — the core driver of long-term stock price appreciation.
- EPS Estimate
- A forecast of a company's future earnings per share, published by a sell-side analyst. Estimates are typically made for the current quarter, the current fiscal year, and the next fiscal year. Most institutional valuation models are built around these forward estimates rather than historical reported EPS.
- Consensus Estimate
- The average (or median) of all analyst EPS estimates for a given company and time period. The consensus is what the market treats as the "official" expectation. A stock that reports above the consensus is said to have had a positive earnings surprise; below is a negative surprise.
- EPS Revision
- A change in an analyst's EPS estimate, or in the consensus estimate, from one period to the next. Revisions can be upward (the analyst raised their forecast) or downward (the analyst cut their forecast). Tracking the direction and magnitude of revisions is the basis of earnings momentum investing.
- Earnings Momentum
- The tendency for stocks with rising analyst EPS estimates to continue outperforming, and stocks with falling estimates to continue underperforming. Earnings momentum is a well-documented market anomaly — academic research suggests it persists because institutional capital moves gradually in response to revisions, not all at once.
- Forward EPS
- An EPS estimate for a future fiscal year, as opposed to trailing EPS (what the company already reported). "Next year forward EPS" is the most commonly used figure in growth stock valuation because it reflects where analysts think the business is heading, not where it has already been.
- Next-Year EPS Growth
- The percentage increase in forward EPS expected for the upcoming fiscal year compared to the current fiscal year. This is the primary screening criterion used by Platinum Stock Analyzer. A stock with 25% next-year EPS growth means analysts expect earnings per share to be 25% higher in the next fiscal year than in the current one.
- Estimate Revision Breadth
- A measure of how many analysts are revising in the same direction. If 8 out of 10 analysts covering a stock raised their estimates this week, the revision breadth is high — a much stronger signal than a single analyst moving alone. High breadth revisions tend to produce more persistent price moves.
- Earnings Surprise
- The difference between a company's actual reported EPS and the consensus estimate at the time of reporting. A positive surprise (beat) typically causes an immediate stock price jump. A negative surprise (miss) typically causes a drop. Earnings surprises often trigger a wave of subsequent EPS revisions as analysts update their models.
- Guidance
- Forward-looking statements from a company's management about expected future revenue, earnings, or margins. When a company raises guidance — says it expects to earn more than previously indicated — analysts typically raise their EPS estimates in response. Lowered guidance triggers cuts. Guidance changes are one of the most common catalysts for EPS revisions.
- Sell-Side Analyst
- A research analyst employed by an investment bank or brokerage who publishes reports and EPS estimates on publicly traded companies. Their estimates are the raw inputs that form the consensus. "Sell-side" distinguishes them from buy-side analysts who work inside asset management firms.
- Price-to-Earnings Ratio (P/E)
- A stock's price divided by its EPS. The forward P/E uses the next-year EPS estimate as the denominator. When EPS estimates rise and the stock price stays flat, the forward P/E compresses — making the stock look cheaper and attracting buyers. This is the mechanical link between upward EPS revisions and stock price gains.
- Screener Universe
- The set of stocks eligible to appear in a screener's results. Platinum Stock Analyzer's universe includes stocks that meet the minimum next-year EPS growth threshold. Stocks enter the universe when they cross the threshold and exit when they fall below it. Entries and exits are reported on the dashboard as "New Tickers" and "Removed."
- Delta (Revision Delta)
- The percentage change in consensus EPS estimate from one trading session to the next. This is the core metric the screener ranks on. A delta of +5% means the consensus EPS estimate rose 5% overnight — a significant revision that often signals a meaningful development in the underlying business.
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