Whisper Number | Definition, How It Works, Factors, & Strategies (2024)

What Is a Whisper Number?

Whisper numbers represent an unofficial earnings per share (EPS) estimate circulating among professional traders and analysts on Wall Street.

These figures are often based on intuition, experience, and internal data, offering a unique perspective on a company's prospective financial performance.

Whisper numbers are significant because they often provide alternative insights that can potentially outpace or counter the consensus estimates.

These alternative views can assist wealth managers in refining investment strategies, identifying potential risks, and exploiting opportunities for gains.

Due to their private nature, whisper numbers can sometimes reveal a different story about a company's anticipated financial results, influencing trading decisions in the process.

How Whisper Numbers Work

Whisper Numbers operate on the premise that certain individuals or sources may possess unofficial or non-public information that can provide insights into a company's upcoming earnings performance.

These whispers, often based on industry knowledge, insider information, or market rumors, may deviate from the consensus estimates provided by analysts.

Wealth managers actively seek out and analyze these whispers to gain a potential informational edge in their investment decisions.

By incorporating Whisper Numbers into their analysis, wealth managers aim to gauge the market's expectation and potential reaction to earnings releases, identify potential earnings surprises, adjust portfolio allocations, and manage risk.

While the use of Whisper Numbers can provide additional perspectives and potentially uncover opportunities, it is important to critically evaluate and corroborate the information from reliable sources to mitigate the risks associated with unverified or inaccurate whispers.

Factors Influencing Whisper Numbers

Analysts and Industry Experts

Analysts and industry experts have significant sway over whisper numbers. Their in-depth understanding of a company, its industry, and the broader market conditions can lead to informed speculations that diverge from the consensus.

Market Sentiment and Investor Expectations

If a company's stock has been performing particularly well or poorly, this can color the expectations of traders and analysts, leading to whisper numbers that deviate from consensus estimates.

Company-Specific Factors

Various company-specific factors such as recent news releases, changes in management, or new product launches can influence whisper numbers.

For instance, if a company announces a groundbreaking new product, this might elevate whisper numbers in anticipation of increased sales.

Whisper Number | Definition, How It Works, Factors, & Strategies (1)

Whisper Numbers Strategies

Benchmarking Against Consensus Estimates

In wealth management, whisper numbers can serve as a valuable benchmark against consensus estimates. This comparison can give investors a more rounded view of a company's expected performance, helping to guide investment decisions.

Identifying Potential Earnings Surprises

Whisper numbers can also aid in identifying potential earnings surprises. If a whisper number significantly deviates from the consensus estimate, it could indicate that a company is likely to either significantly beat or miss its expected earnings.

Adjusting Portfolio Allocations Based on Whisper Numbers

Wealth managers can use whisper numbers to adjust portfolio allocations. If the whisper number for a certain stock is significantly higher than the consensus estimate, it might signal a buying opportunity, prompting a higher allocation to that stock.

Limitations of Whisper Numbers

Reliability and Accuracy Concerns

Despite their usefulness, whisper numbers are not without limitations. Their unofficial and speculative nature can lead to questions about their reliability and accuracy.

They are not subject to the same checks and balances as official estimates, which can result in misinformation.

Potential Manipulation and Biases

The private nature of whisper numbers also raises concerns about potential manipulation and biases. There's a risk that insiders could skew whisper numbers in their favor, creating a misleading picture of a company's expected performance.

Balancing Whisper Numbers With Other Sources of Information

While whisper numbers can provide valuable insights, it's important for wealth managers to balance these with other sources of information. Relying solely on whisper numbers could lead to skewed investment decisions and increased risk.

Whisper Number | Definition, How It Works, Factors, & Strategies (2)

Ethical Considerations in Using Whisper Numbers

Insider Trading and Confidential Information

One of the key ethical considerations when using whisper numbers is the risk of insider trading. Since whisper numbers often circulate among a limited group of insiders, there's a risk that they could be based on confidential information.

Compliance With Regulatory Requirements

Wealth managers must ensure that their use of whisper numbers complies with all relevant regulatory requirements. This includes rules around insider trading, market manipulation, and fair dealing.

Transparency and Fairness in Wealth Management Practices

Whisper numbers should be used in a manner that promotes transparency and fairness in wealth management practices.

This means ensuring that investment decisions are made in the best interests of clients, without undue influence from unofficial and potentially biased information sources.

Conclusion

A whisper number is an unofficial, often confidential, earnings estimate that circulates among professional traders and analysts. It offers an alternative view on a company's prospective financial performance, which can influence investment decisions.

Whisper numbers can provide valuable insights for wealth management strategies, assisting in benchmarking against consensus estimates, identifying potential earnings surprises, and adjusting portfolio allocations.

Their use comes with ethical considerations such as the risk of insider trading, the need for regulatory compliance, and the importance of promoting transparency and fairness in wealth management practices.

Whisper numbers can be utilized by wealth managers to enhance their strategies by benchmarking against consensus estimates, identifying potential earnings surprises, and making appropriate adjustments to portfolio allocations.

Whisper Number FAQs

A whisper number is an unofficial earnings per share (EPS) estimate that circulates among professional traders and analysts on Wall Street.

While consensus estimates are an average of analysts’ predictions widely disseminated in the public domain, whisper numbers are usually informed speculation, confidential in nature and circulate in the more private corners of Wall Street.

Factors that influence whisper numbers include inputs from analysts and industry experts, market sentiment and investor expectations, and company-specific factors.

Limitations of whisper numbers include concerns about their reliability and accuracy, potential manipulation and biases, and the need to balance whisper numbers with other sources of information.

Ethical considerations when using whisper numbers in wealth management include the risk of insider trading, the need to comply with all relevant regulatory requirements, and the importance of promoting transparency and fairness in wealth management practices.

Whisper Number | Definition, How It Works, Factors, & Strategies (3)

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.

Whisper Number | Definition, How It Works, Factors, & Strategies (2024)

FAQs

Whisper Number | Definition, How It Works, Factors, & Strategies? ›

It refers to earnings per share projections that experienced traders and fund managers make. These numbers are unofficial and have not been published but are rumored to be accurate. Additionally, the whisper number is used for any quarterly report or news announcement in any sector.

What is a whisper number? ›

Meaning of whisper number in English

an amount of profit that a financial analyst expects a company to make in a particular period: For small investors, not knowing the whisper numbers is like plunging into a dark hole with no idea of what they are getting into.

How does earning whispers work? ›

The Earnings Whisper Power Rating is a comprehensive tool that reflects the magnitude of an earnings surprise relative to investor expectations, compressed into a single number to give traders an unparalleled edge in their short-term trades lasting up to a week.

How accurate are whisper numbers? ›

As of June 23, 2023, the Earnings Whisper ® number has been closer than the actual reported earnings number than the consensus estimate an astonishingly 70.2% of the time. Still, it is the market that determines the value and, the market's reaction to the different sets of numbers makes it clear which is more valuable.

What is the whisper number code? ›

Therefore, when someone within the firm, an institutional client, or even a retail client asks the analyst his or her expectation for the company, the response is often different from the published estimate. This number then gets passed among trading desks and professional traders as the whisper number.

How does whisper work? ›

Whisper is an anonymous social networking app. Users post confessions, either fact or fiction, by super imposing text on a picture. Whisper's unique selling point is that it is completely anonymous, with users issued a random nickname upon joining.

Why use the whisper? ›

It has a germ-lock technology which locks upto 100% wetness, odour & germs. Its nearly 40% Longer for a longer lasting coverage so that you can be worry free during your periods. Its Dri-Weave Cover ensures that the period blood is absorbed in seconds and it has a delightful scent for all-day freshness.

What is a whisper estimate? ›

While the consensus estimate tends to be widely available, whispers are the unofficial and unpublished earnings per share (EPS) forecasts. In the past, these came from professionals on Wall Street and were meant for the wealthy clients of top brokerages.

What is the whisper number for JPMorgan Chase? ›

JPMorgan Chase Beat Expectations

The Earnings Whisper number was $4.38 per share. The company beat expectations by 5.71% while revenue grew 21.32% on a year-over-year basis. JPMorgan Chase & Co is a financial services firm and a banking institution.

What is the whisper number on Wall Street? ›

A whisper number is an undisclosed figure that several people predict the firm will produce, irrespective of the consensus projections. Financial analysts that track a certain firm will eventually issue their official profits forecast for the subsequent quarters.

How reliable is Earnings Whisper? ›

Earnings Research

Our precision is unparalleled, with our Earnings Whisper number being the most accurate published expectation an impressive 71.7% of the time. This unmatched accuracy has earned Earnings Whispers a reputation of reliability and excellence.

What is the whisper number investopedia? ›

Whisper Number. A whisper stock is similar to a whisper number. The latter is an unofficial estimate of a company's impending announcement of quarterly earnings, typically shared by an investment professional with favored clients.

Is Earnings Whispers free? ›

Stay one step ahead of the market, make more informed decisions, and join our community of savvy investors today - for free. Your journey towards better investing starts here with Earnings Whispers. Sign up now!

What is the whisper number for BAC? ›

The consensus earnings estimate was $0.77 per share on revenue of $25.24 billion. The Earnings Whisper number was $0.80 per share. The company beat expectations by 3.75% while revenue grew 18.80% on a year-over-year basis. Bank of America Corporation is a bank holding and a financial holding company.

What are the whisper numbers for NFLX? ›

Netflix (NFLX) reported earnings of $5.28 per share on revenue of $9.37 billion for the first quarter ended March 2024. The consensus earnings estimate was $4.51 per share on revenue of $9.25 billion. The Earnings Whisper number was $4.61 per share.

What is whisper text message? ›

The postings, called "whispers", consist of text superimposed over an image, and the background imagery is either automatically retrieved from Whisper's search engine or uploaded by the user.

References

Top Articles
Latest Posts
Article information

Author: Fr. Dewey Fisher

Last Updated:

Views: 5996

Rating: 4.1 / 5 (42 voted)

Reviews: 89% of readers found this page helpful

Author information

Name: Fr. Dewey Fisher

Birthday: 1993-03-26

Address: 917 Hyun Views, Rogahnmouth, KY 91013-8827

Phone: +5938540192553

Job: Administration Developer

Hobby: Embroidery, Horseback riding, Juggling, Urban exploration, Skiing, Cycling, Handball

Introduction: My name is Fr. Dewey Fisher, I am a powerful, open, faithful, combative, spotless, faithful, fair person who loves writing and wants to share my knowledge and understanding with you.