Earnings guidance
In financial reporting, earnings guidance or simply guidance is a
According to Investopedia, Guidance refers to Information that a company provides as an indication or estimate of its future earnings. Guidance reports estimating a company's future earnings have some influence over analyst stock ratings and investor decisions to buy, hold, or sell the security.[1]
In the United States, a quarterly revenue forecast, or quarterly guidance, by publicly traded companies had become by the 2000s both a common practice (75% of American firms in 2003) and a major influence on the firm's share price.[2] By the 2010s, the quarterly guidance practice had fallen out of favor among many companies (27% of firms continued the practice in 2017) as it was seen as emphasizing a focus on short-term performance.[2] By contrast, public Eurozone companies rarely (1%) issued quarterly guidance in the 2010s.[2]
References
- ^ Staff, Investopedia (2003-11-23). "Guidance". Investopedia. Retrieved 2018-11-29.
- ^ a b c Adams, Kimberly (2 June 2019). "Is the end of quarterly forecasting in sight?". OZY. Retrieved 29 June 2019.