AnalystRevision · Earnings forecast · Hawkins, Chamberlin, Daniel (1984)

EPS forecast revision

Long minus short decile portfolio, value-weighted, market-adjusted. Quarterly, 1976Q2 to 2024Q4.

Expected return · posterior mean, % per year, averaged over the window
Next quarter
2026Q4
6.24%
95% interval 2.59% to 9.44%
Next year
2026Q4–2027Q3
6.12%
95% interval 2.43% to 9.42%
Next five years
2026Q4–2031Q3
5.64%
95% interval 1.69% to 9.34%

Forecast made 16 Sep 2026, conditioning on this portfolio's OAP returns, which end 2024Q4. The 7 quarters between then and 2026Q4 are unobserved and are integrated out under the model.

Cumulative market-adjusted return

+1,080% since 1976Q2 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1976Q2–2024Q4 5.74% 11.54% 0.50 3.47
2020Q1–2024Q4 15.13% 13.53% 1.12 2.50
2024Q1–2024Q4 13.01% 13.98% 0.93 0.93

Forecast Sharpe ratio, annualized

Window Mean 95% interval P(neg)
2026Q4 0.55 0.23 – 0.83 <0.01
2026Q4–2027Q3 0.50 0.19 – 0.77 <0.01
2026Q4–2031Q3 0.37 0.10 – 0.63 <0.01
Category
Earnings forecast
Form
Continuous
Data
Analyst
Sorted on
High minus low
Names per leg
338 long / 338 short median · 176.5 at the 10th pctile
Original sample
1975–1980