Juan Luis Perez UBS

UBS analyzed seven years worth of earnings calls — totaling more than 300 million words — from S&P 500 companies.
That sentiment analysis points to yet another breakout quarter with earnings, the bank predicts, with companies set to beat expectations by 3% or more.
UBS’ “Evidence Lab” has also undertaken large projects like satellite imagery and dismantling cars as it tries to position itself for the next era of Wall Street research.

It’s no secret that an upbeat earnings call likely means good things to come for a company’s stock.

So UBS set out to analyze the conference call from every S&P 500 company in the US and Europe from every quarter for the past seven years to see just how often this is true. The resulting data set of 367 million words from 118,000 calls signals yet another earnings blowout this season, the bank said after analyzing the emotions behind executives’ language in the calls.

“The positive momentum in net sentiment, an 8%+ Q1 earnings surprise and a solid macro backdrop reinforce our US Equity Strategy expectation for a Q2 beat of 3%+ in the US,” a team of analysts led by James Arnold said in a note to clients this week. “Furthermore, …read more


Source:: Businessinsider – Finance

      

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