From Money Extra:
A study of financial forecasting accuracy by management consultancy, Parson Consulting, shows that just 49 out of the FTSE 350 list of companies (14%) matched analysts’ earnings-per-share (EPS) forecasts in 2005, up three points from the previous year, but still way short of their US counterparts. Some 39% of S&P500 companies hit analysts’ expectations (plus or minus 1%), an increase from 34% in 2004. Companies in other leading stock exchanges around the world performed even worse in this respect than those in the UK. Less than 10% of those in the SBF120 (France), DAX100 (Germany) and HM (Hong Kong) matched analysts’ expectations. However, the study also found UK-listed companies were most likely to over-perform against forecast when compared to their foreign counterparts. Parson Consulting’s annual study, ‘Hits and Misses’ compares analysts’ forecasts of a company’s EPS against actual company results. This year’s study shows little improvement in EPS forecasting accuracy; 55…
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