Study: Analysts have been overly optimistic on earnings

05/14/2010 | CFO.com

Since 1985, the annual earnings forecasts of Wall Street analysts have been nearly 100% too high, according to a study by McKinsey & Co. "One reason analysts are slow to update their forecasts is that they do in-depth research and build complex forecasting models ... [and] there is a trade-off between accuracy and complexity," said Kenneth Posner, a former managing director and equity analyst at Morgan Stanley.

View Full Article in:

CFO.com

Published in Brief: