Profit Warning

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Profit Warning

An informal announcement by a publicly-traded company that its earnings for a given quarter or year will be less than expected. This is done to price out the company's share price and avoid a sell-off or other volatility when the earnings are actually announced.
References in periodicals archive ?
Over a fifth of profit warnings were said to have been triggered by currency headwinds in the first half of 2014, compared with just 3% last year.
There were 19 profit warnings issued by North West companies, according to research released today by accountants Ernst & Young.
Profit warnings in the North-east and Yorkshire dropped from eight, issued in quarter four 2007, to six in the three months to the end of March, while other regions were posting increases, said accountants Ernst & Young.
Chris Grove, partner at BDO, said: "Despite several big retailers issuing profit warnings in the last few days, actual consumer spending still looks strong, buoying up business confidence as we progress into 2005."
MT Hojgaard's other owner, the contractor Monberg & Thorsen A/S, also issued a profit warning today, saying that it had adjusted its expectations for the full year from an after-tax profit of approximately DKK50m to a loss of DKK80m.
ICI plummeted four per cent yesterday after its German chemicals rival BASF issued a profit warning.
A total of 28 companies in the region issued profit warnings in 2017, a 17% increase on the previous year.
The report said slower-thanexpected sales continued to trigger most UK profit warnings but 11 per cent of them in Q2 nationally relate to the EU referendum, with companies citing the impact of uncertainty on demand.
Quoted companies in the region issued six profit warnings in the first quarter of 2015, compared with nine in the first quarter of 2013 and 10 in the first three months of 2014.
The report said profit warnings also rose due to growing competitive pressure, geopolitical tensions and market volatility.
The two profit warnings in Q4 both came from the industrial engineering sector, which saw the highest proportion of companies issuing profit warnings in the West Midlands in 2013.
The number of profit warnings issued by companies rose to a two year high in the first quarter of 2011, as rising inflation squeezed consumer spending power, a new report has claimed.