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Earnings Warning

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Earnings Warning
An announcement by a publicly-traded company, often over a conference call, that its earnings will not be as high as previously expected. Earnings warnings give investors and analysts a basis from which to make their investment decisions and recommendations. It also helps the company price out the bad news so its share price is not subject to wild drops when the earnings are actually announced.


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Remember, last year Microsoft was counted among the strong until it issued an earnings warning in October.
Earnings warnings in the banking sector, including Deutsche Bank, HSBC and Citigroup, also alarmed investors.
Software firm Sage Group traded in negative territory after Intel issued an earnings warning.
 
 
 
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