What does "earnings upside revisions" mean?

December 3, 2006 10:00 AM

What does "earnings upside revisions" mean?

I'm translating a financial text and I don't understand the following sentence: "Due to its heavy emphasis on earnings upside revisions, the model has an inherent bias towards growth stocks and sectors".

I'm a student in English/French translation, I need to translate this sentence but I don't have any knowledge in finance. What does "earnings upside revisions" mean? Is it a phrase or can you separate the words and use each one of them without the others? I've looked for an explanation or a way of translating it on the internet but I can't find anything...

posted by celine to Writing & Language (4 answers total)

This financial model has, as one of its more significantly weighted components, a change or revision of earnings estimates (the predicted and anticipated earnings for that company in some defined time period) to the upside. Or, the raising of the estimate to a higher number will have a significant effect on the model and will skew towards companies that have estimates that are growing and being revised upwards during the estimated period before the number is released.

If I was estimating that Metafilter stock was going to earn $1.25 this quarter, but because of all the wonderful posts and insightful information provided, more than expected new members joined and the advertising dollars gleened by the sitre rose by more than anticipated, after talking with Mathowie I raised my earnings estimate to $1.50 per share, that would make this company more valuable to the model because of its upside earnings revisions.
posted by JohnnyGunn at 10:17 AM on December 3, 2006

I would add that I would use the syntax "upside earnings revisions" rather than "earnings upside revisions."
posted by JohnnyGunn at 10:18 AM on December 3, 2006

I typically see "upward earnings revisions" (or even just "high earnings revisions") rather than "upside".
posted by milkrate at 12:20 PM on December 3, 2006

hi céline, do you know ProZ? You might get a sensible answer in the Kudoz section there.

(I'm a French>English translator, by the way, but know very little about finance).
posted by altolinguistic at 2:05 PM on December 3, 2006