Q: I have questions about earnings estimates, triggered most recently by your answer to an earlier-today question about Bird Construction. Your answer stated "The earnings estimate for Bird was $0.22 . . ."
WHO comes up with these earnings estimates and, more importantly, HOW do they come up with them? What credentials does anyone (outside the company) have to come up with such statements?
Even more importantly, why do "investors" (??) believe such estimates, to the extent that an "earnings miss" like BDT's drops the share price? Or, more correctly I guess, why does the belief in what would seem to be flimsy evidence like an estimate drive up the share price?
But I'm willing to be educated (that is why I'm here<g>).
WHO comes up with these earnings estimates and, more importantly, HOW do they come up with them? What credentials does anyone (outside the company) have to come up with such statements?
Even more importantly, why do "investors" (??) believe such estimates, to the extent that an "earnings miss" like BDT's drops the share price? Or, more correctly I guess, why does the belief in what would seem to be flimsy evidence like an estimate drive up the share price?
But I'm willing to be educated (that is why I'm here<g>).