Re: Good EPS Data?

matthewbward — Sat, 17 Nov 2012 17:29:54 -0000

Great blog. The sources are all totally different and I guess there is no true EPS number. To your point, consistency is key.

Re: Good EPS Data?

Mike Lamothe — Sat, 17 Nov 2012 17:01:01 -0000

This blog seems to shed some light... http://www.aaii.com/stock-i...

Re: Good EPS Data?

matthewbward — Sat, 17 Nov 2012 16:32:53 -0000

I still think there is more to this. If you look at the Reuters data, you'll see it lays out each quarter and you can do your own math. Similar for Finviz. In fact, the only place where the EPS is obfuscated is IBD. You can obviously see my concern: we're using the IBD50 which has a big EPS component but the EPS data it has can't be confirmed elsewhere.

Re: Good EPS Data?

Mike Lamothe — Sat, 17 Nov 2012 16:21:25 -0000

I agree, this is a nuisance and can be very confusing to say the least. My hypothesis is that each site looks at the same basic EPS data but goes about displaying it slightly differently.

IBD and MarketSmith look at % change in quarterly EPS and Sales as compared to the same month the previous year. For example, when IBD/MarketSmith say that Quarterly EPS rose 25% for stock X in September 2012, it is comparing it to the quarterly earnings posted in September 2011. This method reduces seasonality effects on quarterly reports. Other sites tend to look at quarterly EPS and Sales as compared to the quarter immediately preceding. To continue with the example above, other sites would say stock X had quarterly earnings in September 2012 and it rose y% above June 2012. Even though the comparisons often aren't given and when they are, they're vague, I think that is probably the case in most instances.I can't speak to how Reuters and Finviz calculate EPS since I don't use their services. I personally use IBD and MarketSmith exclusively. I use their services exclusively not only because I find them easy to use and robust, but because I find that using a consistent source has allowed me to compare that source to itself overtime. If I'm gathering bits and pieces of data from all over the place, chances are I'll come up with a lot of conflicting data and be even more confused.There is so much noise out there in the market that I personally try to limit it as much as possible. Having a single source of data (or a very limited handful) I find to be useful in this regard.Anyhow, for what it's worth, those are my two cents. You may also try giving MarketSmith a buzz. I've found their product coaches to be extremely knowledgeable on these sorts of nuances.

Thanks,
Mike Lamothe
ChartYourTrade.com

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