Guidance


Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia.
Related to Guidance: career guidance

Guidance

It is increasingly important for firms to meet or exceed analysts' consensus earnings forecasts. Often management will give guidance or hints of the earnings per share prospects over the next quarter or next year to try to direct the consensus to what is achievable. For example, it is possible that the consensus is well above management's internal forecasts. Management will try to guide the consensus downwards so that when the earnings are released the negative surprise is minimized. Under Regulation FD, management needs to be very careful to provide guidance information to all shareholders -- not just a select group of analysts. This is often achieved in investor presentations (that are often webcast) or conference calls (where anyone is allowed to dial in).

Guidance

An announcement, often over a conference call, by a publicly-traded company of its projected earnings for a quarter or year. Guidance gives investors and analysts a basis from which to make their investment decisions and recommendations. Guidance also helps the company price out any potential good or bad news so its share price is not subject to wild fluctuations when the earnings are actually announced. Guidance is also called earnings guidance.

Guidance.

Guidance, or earnings guidance, occurs when the executives of a publicly traded corporation estimate projected earnings in an open conference call or Web cast before its quarterly earnings are released.

Goals for providing guidance include underplaying expectations to avoid negative surprises, serving as a counterpoint to stock analysts' consensus estimates, reducing stock price volatility when actual results are announced, and potentially shifting investor focus from short-term results to long-term perspectives.

Corporations also provide guidance to the investing community as a whole because they are prohibited by Securities and Exchange Commission (SEC) Rule FD (for Fair Disclosure) from providing important and previously nonpublic information selectively, as they did before the rule was enacted in 2000.

Those who advocate providing this type of guidance argue that the more information investors have the better. Detractors say guidance doesn't reduce volatility or achieve other goals.

References in periodicals archive ?
The middle school teacher grade-level teams can be of great help with preparations and their input can offer helpful recommendations for counselors planning classroom guidance activities.
Furthermore, evidence was provided that technology is most effective when supported by a counselor through one-on-one or group counseling or guidance, as opposed to being self-help (Harris-Bowlsbey, Riley-Dikel, & Sampson, 2002; Harris-Bowlsbey & Sampson, 2001).
Had I lived in London for all of 2006 (a high tax-rate and tax-base country), the guidance would not likely affect X's 2006 U.
Factor analysis revealed that general satisfaction with guidance (students, teachers, and administrators) was significantly related to a variety of input factors such as good counselor image and a well-established guidance program.
The guidance applies only to potential environmental risks that are a consequence of people storing, taking, and excreting medicines.
Group 4: The Implementation of Technology in Career Guidance Around the World
The guidance states that banks should establish and monitor written policies and procedures for ad hoc and automated, or other overdraft-protection programs.
This is a fundamental component of parental guidance and support that should be addressed in a mentoring program for pregnant and parenting teens (Hoppe, Le, & Cunningham, 2000).
Brown said that the upcoming guidance package on the foreign tax credit and expense allocations will address foreign tax credit carryovers.
If the auditor does not apply the auditing guidance included in an applicable interpretive publication, the auditor should be prepared to explain how he or she complied with the SAS provisions addressed by such auditing guidance.
Draft dimensional guidance lists the products totally or partially excluded.
Audit guidance issued this spring by the DCAA is putting the squeeze on federal contractors, and greatly reducing their ability to continue placing qualified workers "in country.