Paper Examines Oil/Gas Earnings
Upcoming Publication in Oil, Gas and Energy Quarterly
Written by Professors Joseph Marks, Ph.D., assistant professor of finance, David Mest, Ph.D., assistant professor of accounting, and Joyce Strawser, Ph.D., associate dean and associate professor of accounting, “An Examination of Financial Analyst Forecast Errors for Oil and Gas Companies," will be published in the June 2007 issue of Oil, Gas and Energy Quarterly.
The paper examines the accuracy of sales and earnings forecasts for the oil and gas industry. The authors find that income forecasts for gas utilities are significantly less optimistic than the forecasts for other firms and that analysts underweight data on sales and income for both non-utility and utility gas firms.
In contrast, they do not observe significant underweighting for oil firms. Finally, futures prices are over-weighted in sales forecasts for all groups except oil producers.
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