AnalystRevision · Earnings forecast · Hawkins, Chamberlin, Daniel (1984)

EPS forecast revision

Long minus short quintile portfolio, value-weighted, market-adjusted. Quarterly, 1976Q2 to 2024Q4.

Expected return · posterior mean, % per quarter
Next quarter
1.42%
95% interval 0.70% to 2.19%
Next year
1.38%
95% interval 0.69% to 2.11%
Next five years
1.27%
95% interval 0.56% to 1.98%

Cumulative market-adjusted return

+1,219% since 1976Q2 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1976Q2–2024Q4 5.79% 9.68% 0.60 4.18
2020Q1–2024Q4 10.53% 11.43% 0.92 2.06
2024Q1–2024Q4 25.63% 11.37% 2.25 2.25

Forecast Sharpe ratio, per quarter

Horizon Mean 95% interval P(neg)
Next quarter 0.294 0.144 – 0.458 0.00
Next year 0.286 0.143 – 0.439 0.00
Next five years 0.263 0.116 – 0.409 0.00
Category
Earnings forecast
Form
Continuous
Data
Analyst
Predicted sign
Positive
Original sample
1975–1980