Earnings forecasts are predictions about a company's future profits, typically made by analysts or financial institutions. These forecasts are based on various factors, including past performance, market conditions, and economic trends. Investors use these estimates to gauge a company's potential growth and make informed decisions about buying or selling stocks. Analysts often provide earnings forecasts for specific periods, such as quarterly or annually. These projections can influence stock prices, as positive forecasts may lead to increased investor confidence, while negative forecasts can result in declines. Accurate earnings forecasts are crucial for both investors and companies in planning and strategy.