First Call is a service from Thomson Reuters that aggregates the earnings and performance estimates of financial analysts. Its primary focus is to provide a consensus opinion regarding the expected financial performance of publicly traded companies. This service is instrumental for investors, as it offers a collective view from numerous experts, thus aiding in informed investment decision-making.
Overview of First Call
First Call serves as a central repository for financial analyst estimates. These estimates generally cover:
- Earnings forecasts
- Revenue projections
- Stock recommendations (buy, hold, sell)
- Price targets
History and Development
First Call was originally developed as an independent service but was later acquired by Thomson Reuters. It has undergone significant enhancements since its inception, now incorporating sophisticated algorithms and AI to ensure more accurate, up-to-date data.
Functionality and Importance in Financial Markets
Key Features
- Consensus Estimates: Aggregates data from multiple analysts to provide a median or average estimate.
- Real-Time Updates: Offers real-time updates as new data and analyses are provided.
- Comprehensive Coverage: Extends coverage to a wide array of sectors, industries, and geographic regions.
Utilization by Investors
Investors rely on First Call for several reasons:
- Decision-Making: Provides a clearer picture of a company’s expected financial performance.
- Trend Analysis: Helps in identifying potential trends and market movements based on aggregate expert opinions.
- Risk Mitigation: Offers a more balanced view, considering the input from numerous analysts, thus reducing the risk associated with relying on a single opinion.
Examples and Applications
Example 1: An investor considering an investment in a technology company can use First Call to access the combined earnings projections from multiple analysts, compare these projections with current market value, and make an informed stock purchase decision.
Example 2: Portfolio managers may use First Call to review the broader market analyst sentiment during earning seasons, evaluating potential adjustments to their investment strategies based on aggregated analyst data.
Comparisons and Related Terms
Comparisons
- First Call vs. Bloomberg Consensus: Both platforms offer similar services, but users may prefer one over the other due to differences in data presentation, source variety, or regional coverage.
- First Call vs. Individual Analyst Reports: While individual reports provide detailed analyses, First Call delivers a summarized, consensus view, which can often offer a more balanced perspective.
Related Terms
- Earnings Per Share (EPS): A key metric often projected by financial analysts.
- Price/Earnings Ratio (P/E Ratio): An important indicator used alongside First Call estimates to evaluate stock value.
- Analyst Rating: Individual ratings (buy, hold, sell) that contribute to the consensus.
FAQs
What is First Call used for?
How frequently is First Call updated?
Who typically uses First Call?
References
- Thomson Reuters. (2023). First Call Overview. Retrieved from Thomson Reuters.
- Bloomberg. (2023). Earnings Estimates Comparison. Retrieved from Bloomberg.
Summary
First Call is an indispensable tool from Thomson Reuters that provides consensus earnings estimates and stock recommendations from financial analysts. By aggregating data from various sources, it aids investors in making well-informed decisions, thereby playing a vital role in financial markets. Whether you’re a retail investor or a financial professional, understanding and utilizing First Call can significantly enhance your investment strategy.
