The average earnings surprise by S&P 500 companies stands at around 5%

Do any of the 20 analyst that cover Tesla have any idea what the company’s earnings are supposed to be ? let’s look at history shall we?

 

In June of 2016, Tesla surprised the average analyst estimate by negative 215.7 percent.
In September of 2016, Tesla surprised by a positive 231.5 percent.
In December of 2016, it showed up with a negative 60.5%
Then in March of 2017, Tesla again had a negative surprise of 64.2%.

errr maybe Tesla has no idea what their earnings are…er Musk that is has no idea.

Probably nothing right?
Analyst have no idea what earnings will be because management have no idea what earnings will be.

Must be a very good business when one can’t forecast out one month or 1 year. Even better, forecasting profitability and missing it by a wide mark should give management the credibility to claim Tesla is well on its way to being a trillion dollar company. Nothing could happen between 2017 or 2020 when 1 quarter or 1 year is unanchored.

 

For what it is worth, the average earnings surprise for S&P 500 companies is around 5% according to Yardeni research.

Categories:

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s