Earnings Season Forecasts: Look At Whisper Numbers

by Mike Kapsch

If you ask Investment U Chief Investment Strategist Alexander Green what’s the most important thing to pay attention to before investing in any stock, he can tell you in one word...

Earnings. (Just see for yourself here, here, and here.)

That’s simply because, for any publicly traded company, share prices ultimately follow earnings. There is no better indicator, period.

And since we’re in the thick of earnings season, there’s something I want to share with you. It’s a website that could help you sort the rest of this earnings season’s winners from the losers.

The site collects “unofficial” earnings expectations from multiple traders and investors, better known as whisper numbers.

It may not sound like much at first.

But as San José University’s School of Business discovered, following whisper numbers “... provides even greater returns than analyst estimates.”

The site I’m writing you about today is, in fact, the only whisper numbers site featured on CNBC, Fox Business and Bloomberg.

And perhaps the best part, registering and using it is free. (Although, it also has a premium service you can pay for.)

What’s the name of it?

It’s none other than www.WhisperNumber.com.

A Useful Tool for Earnings Season

If you’re unfamiliar with whisper numbers, they’re simply unpublished earnings forecasts.

However, even though they’re unpublished, they’re used by hedge funds, institutional investors and professional traders all around the world.

That’s because whisper numbers most accurately represent the expectations of the “smart money” on Wall Street.

As The Wall Street Journal reports, “Research conducted by two professors at Purdue University in West Lafayette, Indiana, several years ago found that whisper numbers on the internet were closer to companies' actual reported earnings than were the consensus forecasts of Wall Street analysts, which are the official numbers they release and not whisper numbers.”

If you’re a trader or just want another opinion on a company’s earnings, WhisperNumber.com may be useful to you.

It’s not right every time. For instance, prior to Google’s (Nasdaq: GOOG) poor earnings release, the WhisperNumber.com EPS estimates came in at $10.98. Official estimates had the company’s earnings pinned at $10.65 per share and final earnings actually came in at $9.03.

But just this week, the site’s whisper numbers for PepsiCo (NYSE: PEP), Goldman Sachs (NYSE: GS) and United Healthcare Corp. (NYSE: UNH) all were closer than official earnings estimates.

This service should help shed some light around uncertain earnings seasons, such as our current one.

Good Investing,

Mike

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