Estimate Analysis

# Estimate Analysis Skill

Deep-dives into analyst estimates and revision trends using Yahoo Finance data via [yfinance](https://github.com/ranaroussi/yfinance). Covers EPS and revenue estimate distributions, revision momentum, growth projections, and multi-period comparisons — the full picture of where the street thinks a company is heading.

**Important**: Data is for research and educational purposes only. Not financial advice. yfinance is not affiliated with Yahoo, Inc.

---

## Step 1: Ensure yfinance Is Available

**Current environment status:**

```
!`python3 -c "import yfinance; print('yfinance ' + yfinance.__version__ + ' installed')" 2>/dev/null || echo "YFINANCE_NOT_INSTALLED"`
```

If `YFINANCE_NOT_INSTALLED`, install it:

```python
import subprocess, sys
subprocess.check_call([sys.executable, "-m", "pip", "install", "-q", "yfinance"])
```

If already installed, skip to the next step.

---

## Step 2: Identify the Ticker and Gather Estimate Data

Extract the ticker from the user's request. Fetch all estimate-related data in one script.

```python
import yfinance as yf
import pandas as pd

ticker = yf.Ticker("AAPL")  # replace with actual ticker

# --- Estimate data ---
earnings_est = ticker.earnings_estimate      # EPS estimates by period
revenue_est = ticker.revenue_estimate        # Revenue estimates by period
eps_trend = ticker.eps_trend                 # EPS estimate changes over time
eps_revisions = ticker.eps_revisions         # Up/down revision counts
growth_est = ticker.growth_estimates         # Growth rate estimates

# --- Historical context ---
earnings_hist = ticker.earnings_history      # Track record
info = ticker.info                           # Company basics
quarterly_income = ticker.quarterly_income_stmt  # Recent actuals
```

### What each data source provides

| Data Source | What It Shows | Why It Matters |
|---|---|---|
| `earnings_estimate` | Current EPS consensus by period (0q, +1q, 0y, +1y) | The estimate levels — what analysts expect |
| `revenue_estimate` | Current revenue consensus by period | Top-line expectations |
| `eps_trend` | How the EPS estimate has changed (7d, 30d, 60d, 90d ago) | Revision direction — rising or falling expectations |
| `eps_revisions` | Count of upward vs downward revisions (7d, 30d) | Revision breadth — are most analysts raising or cutting? |
| `growth_estimates` | Growth rate estimates vs peers and sector | Relative positioning |
| `earnings_history` | Actual vs estimated for last 4 quarters | Calibration — how good are these estimates historically? |

---

## Step 3: Route Based on User Intent

The user might want different levels of analysis. Route accordingly:

| User Request | Focus Area | Key Sections |
|---|---|---|
| General estimate analysis | Full analysis | All sections |
| "How have estimates changed" | Revision trends | EPS Trend + Revisions |
| "What are analysts expecting" | Current consensus | Estimate overview |
| "Growth estimates" | Growth projections | Growth Estimates |
| "Bull vs bear case" | Estimate range | High/low spread analysis |
| Compare estimates across periods | Multi-period | Period comparison table |

When in doubt, provide the full analysis — more context is better.

---

## Step 4: Build the Estimate Analysis

### Section 1: Estimate Overview

Present the current consensus for all available periods from `earnings_estimate` and `revenue_estimate`:

**EPS Estimates:**

| Period | Consensus | Low | High | Range Width | # Analysts | YoY Growth |
|---|---|---|---|---|---|---|
| Current Qtr (0q) | $1.42 | $1.35 | $1.50 | $0.15 (10.6%) | 28 | +12.7% |
| Next Qtr (+1q) | $1.58 | $1.48 | $1.68 | $0.20 (12.7%) | 25 | +8.3% |
| Current Year (0y) | $6.70 | $6.50 | $6.95 | $0.45 (6.7%) | 30 | +10.2% |
| Next Year (+1y) | $7.45 | $7.10 | $7.85 | $0.75 (10.1%) | 28 | +11.2% |

**Revenue Estimates:**

| Period | Consensus | Low | High | # Analysts | YoY Growth |
|---|---|---|---|---|---|
| Current Qtr | $94.3B | $92.1B | $96.8B | 25 | +5.4% |
| Next Qtr | $102.1B | $99.5B | $105.0B | 22 | +6.1% |

Calculate and flag:
- **Range width** as % of consensus — wide ranges (>15%) signal high uncertainty
- **Analyst coverage** — fewer than 5 analysts means thin coverage, note this
- **Growth trajectory** — is growth accelerating or decelerating across periods?

### Section 2: Revision Trends (EPS Trend)

This is often the most actionable section. From `eps_trend`, show how estimates have moved:

| Period | Current | 7 Days Ago | 30 Days Ago | 60 Days Ago | 90 Days Ago |
|---|---|---|---|---|---|
| Current Qtr | $1.42 | $1.41 | $1.40 | $1.38 | $1.35 |
| Next Qtr | $1.58 | $1.57 | $1.56 | $1.55 | $1.54 |
| Current Year | $6.70 | $6.68 | $6.65 | $6.58 | $6.50 |
| Next Year | $7.45 | $7.43 | $7.40 | $7.35 | $7.28 |

Summarize the trend: "Current quarter EPS estimates have risen 5.2% over the last 90 days, with most of the increase in the last 30 days — accelerating upward revision momentum."

**Key interpretation:**
- Rising estimates ahead of earnings = positive setup (the bar is rising)
- Falling estimates = analysts cutting numbers, often a negative signal
- Flat estimates = no new information being priced in
- Recent acceleration/deceleration matters more than the total move

### Section 3: Revision Breadth (EPS Revisions)

From `eps_revisions`, show the up vs. down count:

| Period | Up (last 7d) | Down (last 7d) | Up (last 30d) | Down (last 30d) |
|---|---|---|---|---|
| Current Qtr | 5 | 1 | 12 | 3 |
| Next Qtr | 3 | 2 | 8 | 5 |

Calculate a revision ratio: Up / (Up + Down). Ratios above 0.7 are strongly bullish; below 0.3 are bearish.

### Section 4: Growth Estimates

From `growth_estimates`, compare the company's expected growth to benchmarks:

| Entity | Current Qtr | Next Qtr | Current Year | Next Year | Past 5Y Annual |
|---|---|---|---|---|---|
| AAPL | +12.7% | +8.3% | +10.2% | +11.2% | +14.5% |
| Industry | +9.1% | +7.0% | +8.5% | +9.0% | — |
| Sector | +11.3% | +8.8% | +10.0% | +10.5% | — |
| S&P 500 | +7.5% | +6.2% | +8.0% | +8.5% | — |

Highlight whether the company is expected to grow faster or slower than its peers.

### Section 5: Historical Estimate Accuracy

From `earnings_history`, assess how reliable estimates have been:

| Quarter | Estimate | Actual | Surprise % | Direction |
|---|---|---|---|---|
| Q3 2024 | $1.35 | $1.40 | +3.7% | Beat |
| Q2 2024 | $1.30 | $1.33 | +2.3% | Beat |
| Q1 2024 | $1.52 | $1.53 | +0.7% | Beat |
| Q4 2023 | $2.10 | $2.18 | +3.8% | Beat |

Calculate:
- **Beat rate**: X of 4 quarters
- **Average surprise**: magnitude and direction
- **Trend in surprise**: Are beats getting bigger or smaller? A shrinking surprise with rising estimates could mean the bar is catching up to reality.

---

## Step 5: Synthesize and Respond

Present the analysis with clear structure:

1. **Lead with the key insight**: "AAPL estimates are trending higher across all periods, with positive revision breadth (80% of recent revisions are upward)."

2. **Show the tables** for each section the user cares about

3. **Provide interpretive context**:
   - Is the revision trend confirming or contradicting the stock's recent price action?
   - How does the growth outlook compare to what's priced into the current P/E?
   - What's the relationship between estimate accuracy history and current estimate levels?

4. **Flag risks and nuances**:
   - Estimates cluster around consensus — the "real" distribution of outcomes is wider than low/high suggests
   - Revision momentum can reverse quickly on a single data point (guidance change, macro event)
   - Yahoo Finance estimates may lag behind real-time consensus providers by hours or days
   - Growth estimates for out-years (+1y) are inherently less reliable

### Caveats to always include
- Analyst estimates reflect a consensus view, not certainty
- Estimate revisions are a signal but not a guarantee of future performance
- This is not financial advice

---

## Reference Files

- `references/api_reference.md` — Detailed yfinance API reference for all estimate-related methods

Read the reference file when you need exact return formats or edge case handling.