Earnings Delta Q1 2019

February 21st, 2019

EAFE QTD Performance by Sector

At Blackcrane Capital, we define the term “earnings delta” as the degree to which any given name (or sector) beats or misses consensus earnings estimates. In our investment process, which requires at least a 10% forecasted earnings beat for each name in our portfolio, we tend to use operating profits (OP) to measure the deltas; however, in some sectors, such as Financials, we instead focus on divergences between consensus estimates and reported values for earnings per share (EPS).