... that whispers are more accurate proxies for market expectations and that they provide information that is not subsumed by analyst forecasts on earnings. Janis Zaima can be contacted at: zaima_j@cob.sjsu.edu © Emerald Group Publishing Limited 2009 Stock markets Earnings Profit forecasting...

... and the year‐by‐year variation in the slopes. Both a linear and a nonlinear partial adjustment models are used for forecasting profitability. Findings Findings show that the profitability does follow a mean‐reverting process and that profitability forecasting can be improved substantially by exploiting...