Whisper Number: How Will Mastercard’s Stock Move After Earnings?
Mastercard (NYSE:MA) is expected to report earnings on Thursday, May 1. The whisper number is $0.77, five cents ahead of the analysts’ estimate and showing confidence. Whispers range from a low of $0.75 to a high of $0.82. Mastercard has a 90 percent positive surprise history, having topped the whisper in 28 of the 31 earnings reports for which we have data.
- Beat whisper: 28 qtrs
- Met whisper: 0 qtrs
- Missed whisper: 3 qtrs
Our primary focus is on post earnings price movement. Knowing how likely a stock’s price will move following an earnings report can help you determine the best action to take (long or short). In other words, we look at what happens when the company beats or misses the whisper number expectation.
The table below indicates the average post earnings price movement within a one and thirty trading day timeframe.
The strongest price movement of +4.2 percent comes within thirty trading days when the company reports earnings that beat the whisper number, and +3.1 percent within thirty trading days when the company reports earnings that miss the whisper number. While the strongest price moves are positive, the overall average price move is ‘as expected’ (beat the whisper number and see strength, miss and see weakness) when the company reports earnings.