Abstract ABSTRACT: For many quarterly time series of corporate earnings per share, the data indicate the desirability of incorporating a power transformation into the time series model. Our empirical results suggest that, for such series, this will generally lead to forecasts of improved quality. The resulting forecasts compare more favorably with those of financial analysts than do forecasts derived from models without the transformation parameter.

W. S. Hopwood, J. C. Mckeown, P. Newbold, The Additional Information Content of Quarterly Earnings Reports: Intertemporal Disaggregation, Journal of Accounting Research, Vol. 20, No. 2, Part I (Autumn, 1982), pp. 343-349