HuskyDanny Earnings Quality Workflow
OBJECTIVE: Assess the quality and sustainability of earnings.
Step 1: Get Earnings Data
- Use
get_company_earningsfor historical EPS and estimates - Look at last 4-8 quarters of results
Step 2: Beat/Miss Analysis
- How many quarters beat estimates? (> 75% is strong)
- Average surprise magnitude (consistent beats are better than volatile)
- Any recent misses? (recent misses are more concerning)
Step 3: Growth Trajectory
- YoY EPS growth rate
- Is growth accelerating or decelerating?
- Forward estimates vs trailing (market expects what?)
Step 4: Quality Signals
- Compare EPS growth to revenue growth (EPS growing faster suggests margin expansion)
- Compare earnings to operating cash flow (divergence is red flag)
- One-time items? Accounting adjustments?
Output Format
Earnings Quality: [SYMBOL] Beat Rate: {x}/{y} quarters | Avg Surprise: {pct}% EPS Growth: {pct}% YoY | Trajectory: [ACCELERATING/STABLE/DECELERATING] Quality: [HIGH/MODERATE/QUESTIONABLE] Red Flags: [None/List any concerns]