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What Are Whisper Numbers?

What Are Whisper Numbers?

Have you ever heard rumors of a news story before it actually makes the headlines?  Have you ever heard people discussing the possible outcomes of anything before it actually happens?  Like these analogies today’s word we’ll discuss is similar.  A Whisper Number forecasts what investors think will happen before the earnings of a company are actually released.  Actual numbers from company’s first quarter earnings are starting to be released, just as we’ve been anticipating. And just as we expected they have been very good for the majority of companies.

If you’re curious where you can find this information just look at the website www.whispernumbers.com.  You can search for any company and find the forecasted results of their upcoming earnings release.  Now, whisper numbers are just that, forecasts of what investors think will happen. They could be wrong.  But analysts and investors watch for whisper numbers as a guide to any investment changes they should make ahead of a company’s earnings call.

Investopedia defines a Whisper Number in the two following ways:

Can Whisper Numbers Be Trusted?

These numbers serve as a guide if you think something big may change as a result of a company’s earnings.  As the website suggests, the whisper numbers are not responsible if actual results vary from what was forecast.  We don’t suggest you invest solely based on a whisper number.

We do think whisper numbers can serve as a guide for how companies and therefore the economy is performing ahead of the actual results being reported.  But, like many other considerations when you’re investing, this shouldn’t be the only thing you consider when making investment decisions.

 

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