A version of this post first appeared on TKer.co
Earnings estimates for the next 12 months are rising.
And earnings estimates for 2025 and 2026 have been coming down.
The above statements sound like they’re in conflict. But they are actually two ways of communicating the same information. The differentiating factor: The passage of time.
We often hear analysts talk about earnings estimates based on calendar years. For example, coming into this year Wall Street strategists presented their estimates for 2025 earnings.
As time passes and information emerges, analysts will adjust those estimates. Historically, analysts tend to gradually revise down these calendar year estimates. And so far, this has been the case in 2025.
However, time can pass quickly. And with calendar year estimates, what was once a discussion about future earnings can quickly become a discussion about past…
