ForecastSentiment

Earnings Forecast Sentiment — Jones Shi Zhang and Zhang 2025

Earnings Quality

Quick facts

Factor ID ForecastSentiment
Display name Earnings Forecast Sentiment
Family Predictor
Category Earnings Quality
Direction higher_expected_return
Status supported
Paper Jones Shi Zhang and Zhang 2025
Source tables
Required fields
PIT required no
Coverage 2010-02-26 – 2026-04-30 · 97,573 rows · 14.2% of panel

Formula

+1 for positive guidance (预增/扭亏/续盈/略增), -1 for negative

China adaptation

Uses Tushare forecast_vip earnings guidance type classification.

Direction-adjusted cumulative return

1.00 19.62 38.24 56.86 75.48 2010-03 2014-03 2017-07 2021-02 2026-04

Return metrics

Metric Value
Months in sample 141
Monthly mean 3.8923%
Monthly std 15.5505%
Annualized Sharpe 0.87
t-stat (simple) 2.97
Hit rate (months > 0) 61.7%
Last 12M compounded -4.38%
Cumulative wealth (start = 1) 58.323

Recent 12 months

Month L/S return Cumulative Names
2024-01 +1.57% 61.948 2729
2024-03 -0.56% 61.603 54
2024-04 +8.45% 66.810 273
2024-07 -0.18% 66.687 1657
2024-10 -2.78% 64.834 170
2025-01 -7.92% 59.701 2667
2025-03 +1.40% 60.535 40
2025-04 -3.12% 58.643 262
2025-07 +5.76% 62.022 1561
2025-10 -7.65% 57.277 125
2026-01 +0.17% 57.373 2804
2026-04 +1.66% 58.323 210

Known data issues

None recorded.

Notes

Guidance is voluntary and may have selection bias.

See also: Earnings Quality family, Factor library, Factor returns.