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Whisper Number

A whisper number refers to the unofficial, informal estimate of a company’s earnings per share (EPS) or other financial metric that circulates among analysts, traders, and investors before the official earnings report is released. Whisper numbers often reflect market sentiment and expectations that may differ from official Wall Street analyst forecasts. If a company’s earnings beat the whisper number, it can lead to a positive market reaction; missing the whisper number may result in a negative market response.

Example

A company is expected to report earnings of $2.50 per share according to analysts, but the whisper number circulating in the market is $2.60. If the company reports $2.55, it beats the official estimate but misses the whisper number, potentially leading to a mixed market reaction.

Key points

• An unofficial, informal estimate of a company’s financial performance, usually earnings per share (EPS).

• Whisper numbers often reflect market sentiment and can influence stock price reactions.

• A company’s performance relative to the whisper number can lead to significant market movement.

Quick Answers to Curious Questions

They reflect market sentiment and can influence stock price reactions, as they often represent more aggressive expectations than official forecasts.

Whisper numbers are informal, unofficial estimates circulated within the market, while official estimates come from professional analysts and are publicly released.

The stock price reaction may be mixed, as the market might have set higher expectations based on the whisper number, leading to disappointment even if official estimates are beaten.