A whisper number is an unofficial, unpublished forecast of a stock's earnings number. A security analyst comes up with the whisper number and releases this estimate to certain clients to let them know if there is more optimism or pessimism about the earnings than shown in a previously published number. Traditionally, the whisper number was reserved for the wealthy/favored clients, but has become more accessible on the Internet. A whisper number is useful if it differs from the consensus estimate, but its relevance and accuracy depend on the source. Analyzed accurately, the whisper number can help spot an earnings surprise or avoid an earnings disappointment. A whisper number is one of several driving forces behind a stock's short-term price movement, but it's important to remember that the whisper number is just a rumor - it isn't always correct. |
