Where Street earnings are too high & who should miss

New Constructs

Wall Street analysts are too bullish on Q3 expectations for most S&P 500 companies. Although down from record highs set in early 2021, the percentage of companies whose Street EPS exceeds New Constructs’ Core EPS remains high at 71%. Furthermore, 208 companies (>40%) overstate Core Earnings by >10% (Street Earnings are overstated by 24% on average in TTM through 2Q23). New Constructs highlights Bio-Techne as one of the companies most likely to miss Wall Street analysts’ expectations in Q3. Others include Principal Financial Group, T-Mobile, Tesla and Xcel Energy.

- 13 October, 2023