How Do You All Make Revenue Forcasts?

[adios]

I understand your point but if sales went in the dumper earnings would be less. Therefore sales forecasts are most definitely part of the earnings picture. Put another way if you expected lower profit margins but forecast increased sales that resulted in flat earnings over a period of time, if the sales came in much less than anticipated, earnings would decline substantially.

[buffett]

[ QUOTE ]
sales forecasts are most definitely part of the earnings picture

[/ QUOTE ]
Yes, but your question was regarding variant perceptions from Mr. Market. And Mr. Market, bipolar though he is, at least attempts to make his judgments based on cash flow. Revenues, assets, and other things are all variables in the equation, but in aggregate Mr. Market's regression model is most dependent on cash flow.

[adios]

But those estimates are based on perceptions of future revenues.