Prior literature documents the usefulness of the DuPont disaggregation for predicting firms future profitability …. However, there is a lack of research examining how earnings quality affects forecasts of profitability. This paper explores … whether different earnings quality factors moderate the accuracy of profitability forecasts. This study contributes to the …

valuation. In our empirical application, we use 𝑄 to relate analyst forecasts to stock returns and measure the profitability of …