While Street Earnings[1] overstate profits for the majority of S&P 500 companies, as shown in Street Earnings Overstated for 75% of S&P 500 in 3Q23, there are many S&P 500 companies whose Street Earnings are lower than their Core Earnings[2].
This report shows:
- the frequency and magnitude of understated Street Earnings in the S&P 500,
- five S&P 500 companies likely to beat 4Q23 earnings, and
- a deep dive into what causes one company’s earnings to be understated.