Q3 LERI (Late Earnings Report Index) from Wall Street Horizon Continues to Show Unease in Corporate America
Woburn, MA – December 11, 2023 – Wall Street Horizon, the leading provider of market-moving global corporate event data, today announced the LERI (Late Earnings Report Index) is showing consistent signs of uncertainty. The proprietary index allows investors and traders to factor in the market intelligence derived from US public companies releasing earnings later than their historical average, which typically signals negative news on the horizon.
The timing of a firm’s earnings release is one indicator of its financial health, according to findings from several independent academic studies. The LERI tracks the number of off-trend earnings date confirmations reported later or earlier than their historical average at US publicly traded companies with market capitalizations of $250M and higher.
A reading over 100 indicates more companies are delaying earnings reports acting as a “yellow flag” for investors to monitor with caution. For the Q3 2023 earnings season (reported in Q4), Wall Street Horizon reports a LERI of 122, which is a slight decrease from the Q2 2023 reading of 126.
“On a macro index or a micro level, the LERI is one more piece of the puzzle, but it might be very helpful in terms of asking ‘Should I be biasing myself to the long side or the short side? Should I be biasing myself toward being long vol or short vol going into earnings?'" said Steve Sosnick, Chief Strategist at Interactive Brokers.
“It is common knowledge that earnings dates and changes to earnings dates can be a bellwether for which direction the stock price is heading,” said Christine Short, VP of Research at Wall Street Horizon. “By comparing the timing of earnings announcements to the historical norm of the company of the same quarter, it can be even more of a tell for investors.”
About Wall Street Horizon
Wall Street Horizon, a TMX Company, provides institutional traders and investors with an ever-expanding set of forward-looking and historical corporate event datasets, including earnings dates, dividend dates, and a wide variety of investor conferences and events. Covering 10,000 publicly traded companies worldwide, the company offers more than 40 event types. Wall Street Horizon data is recognized globally for its unmatched accuracy and timeliness. For more information, please visit www.wallstreethorizon.com.
Wall Street Horizon, a TMX company