Can 2017 Earnings Meet Analysts' High Expectations?

The video discusses stock analysts' predictions of earnings growth, highlighting skepticism about a 13% increase. It covers analyst expectations, budget planning, and market valuations, including the impact of bond yields. The discussion also touches on revenue growth versus layoffs and factors affecting earnings. Finally, it examines improvements in industrial activity and cost absorption, explaining how increased production can enhance profit margins.

What is the predicted increase in earnings per share according to some analysts?

• 25%

• 20%

• 13%

• 6%

What is the discrepancy often seen between top-down and bottom-up earnings predictions?

• 400 basis points

• 300 basis points

• 200 basis points

• 100 basis points

How do some investors justify the high multiples of individual stocks compared to the market?

• Through revenue growth

• By comparing with bond yields

• Through cost-cutting measures

• By looking at historical data

What are the two main ways to achieve earnings growth?

• Increasing market share and reducing taxes

• Expanding into new markets and increasing prices

• Top line growth and cost reduction

• Improving customer satisfaction and reducing debt

What is the impact of increased production on fixed overhead costs per unit?

• Increases the cost per unit

• Decreases the cost per unit

• Has no effect on cost per unit

• Doubles the cost per unit