Posted By Ted Stiff on 11/20/2006 4:09 PM
So my request is, would it be possible for iclub to send out a reference guide describing the differences in how earnings are reported by the different data sources. I understand there may be some controversy over how important this issue is, but I feel it needs to be understood in making informed decisions and judgements. Especially since we have grown accustomed to the ease of filling in the data on our SSGs with the push of a button.
Here is some more information on the data feed.
Is the StockCentral data feed normalized?Yes. The analysts at our provider, Hemscott Data, adjust net income as reported by the company on their Form 10-K or Form 10-Q to calculate fully-diluted, normalized, Earnings Per Share. This figure includes income from continuing operations, less any extraordinary gains/losses or other non-continuing special income or charges. The figure is calculated using diluted common shares outstanding (adjusted for the assumed conversion of all potentially dilutive securities, which may include convertible debentures, warrants, options, convertible preferred stock, etc.)
How is revenue for banks calculated in the data feed?Bank revenues are calculated as follows:
Net Interest Income + Non-interest Income - Loan Loss Provisions = RevenueThis is the preferred method of calculating bank revenue.
Are the annual high and low prices for a company's fiscal year or calendar year?The annual high and low prices are for a company's fiscal year. They are derived from daily closing prices only, however, not from intraday high and low prices.
How current is the data?Presently, the StockCentral datafiles are generated weekly over the weekend, using data as of the close of the markets on Friday. Quarterly and annual data is updated as soon as is possible after the company files its Form 10-Q or Form 10-K with the Securities and Exchange Commission. No preliminary data is included since no SSG software program is equipped to handle preliminary data in a datafeed.
Does the data feed include analysts estimates?No. StockCentral will eventually publish its own Community Consensus Estimates(TM) based on the stock studies contributed to the site by members. Analysts Consensus Estimates (ACE) of long-term EPS growth have been pretty thoroughly discredited by the financial industry as being next to meaningless. David Dreman, author of "Contrarian Investment Strategies: The Next Generation" (Simon and Schuster, 1998), refers to a study of all companies followed by a minimum of four analysts--about 1,000 companies--over a 23-year period. Dreman found that analysts' estimates of earnings four quarters out were off by at least 5 percent 124 out of 125 times. And when the analysts were estimating five years out, the odds against their being right were 30 billion to one!
Does the data feed include Standard & Poor's Quality Ratings?No, our data source is Hemscott Data, not S&P. We hope to eventually calculate the Take Stock Quality Rating for all stocks in our database, however, and include this rating in our data feed. The Take Stock Quality Rating is more appropriate for fundamental long-term stock investors since it looks at attributes that matter most to buy-and-hold investors.