Will Ashworth in Investopedia laments the inability of media or analysts to get it right:
Apple is the classic example demonstrating the useless nature of estimates. In the company’s first-quarter earnings release it projected earnings per share in Q2 of at least $2.06 on revenues of $11 billion. Taking their lead from the company, analysts’ second-quarter estimates ranged from $2.39 to $2.65 a share. Apple delivered $3.33. Looking ahead to the third quarter, Apple sees at least $2.28 a share on $13 billion in revenue. Analysts, not wanting to be burned a second time, have an estimate of $2.85 a share. You kind of get the feeling neither Apple or Wall Street has a clue what the actual number will be. It’s a complete waste of time yet The Street will continue to provide meaningless numbers and we’ll continue to write about them. That’s the definition of insanity.
Meaningless numbers from analysts and meaningless analysis from the media. What’s going on?
When it comes to the media and Wall Street, it’s like the blind leading the blind. Who’s dumber? It’s a toss-up.
That’s good to know. I would have put money on media.