by Tim Gaumer.
The StarMine team has selected five Asian companies, using the Eikon Screener, that we expect to miss earnings estimates, based on SmartEstimate® and Predicted Surprise data.
Historically, our picks have demonstrated an accuracy rate of about 75% accurate, giving investors an edge ahead of earnings announcements.
Our Asian picks for negative Predicted Surprises in FY2016 are — China Power International Development Ltd (2380.HK), Ratchaburi Electricity Generating Holding Pcl (RATCH.BK), Indocement Tunggal Prakarsa Tbk Pt (INTP.JK), Makalot Industrial Co Ltd (1477.TW), Hanwha Techwin Co Ltd (012450.KS).
SmartEstimates® aim to provide earnings forecasts that are more accurate than I/B/E/S Consensus Estimates, by putting more weight on the recent forecasts of top-rated analysts. When SmartEstimates® diverge significantly from Consensus, you can anticipate the occurrence of earnings surprises with an accuracy rate of 70%. Revenue SmartEstimates® are even more predictive of surprises, with a historical accuracy rate of 78%.
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Which 5 Asia companies does our StarMine team predict will beat earnings expectations? Find out here.