Guidance

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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 ?
This finding suggests the anticipatory guidance and nutritional counseling implemented at the children's' routine preventive dental appointments may play an important role in feeding practices adopted by parents, particularly in high-risk populations.
After the visit with the physician, a behavioral health provider met with the family for additional anticipatory guidance that was based on recommendations by the AAP.
Overall, the project used parent mentoring to provide parents with anticipatory guidance in child health and development.
The PEDS also provided a process whereby those children most at risk were identified and appropriate anticipatory guidance and referrals could be implemented by providers.
Educational program can be an effective intervention for anticipatory guidance and health promotion for at risk and vulnerable populations.
At the time of the interviews, the clinic was not participating in a literacy education program, and no special emphasis was placed on anticipatory guidance to encourage learning.
Comprehensive management should include well-child care, anticipatory guidance for treatment of common childhood illnesses, modification of the immunization schedule, nutritional support, and the provision of early intervention services needed with regard to educational and psychological needs (Bruder, 1995).
To provide optimal anticipatory guidance and support for homosexual adolescent clients and their families, professionals need to understand the natural development of sexual attraction and the disclosure concerns and risks of homosexual adolescents.
Improvement in resident knowledge and / or parent satisfaction was greater in the areas of either anticipatory guidance or developmental milestones that were emphasized on the forms.
The synergy of skills, perspectives, and special talents and the amalgam of medications, technical skill, and myriad interventions--prayer, reflective listening, life review, anticipatory guidance, expressive and receptive music, and art therapies--yield marvelous, at times miraculous, effects.
During the physical, a Take Care Health provider will assess a student's height, weight, body mass index, vision and other information while also providing counseling on certain immunizations and anticipatory guidance to parents regarding their child's health.
However, in my opinion, the unhealthy consequences of permissive parenting deserve a sensitive attempt at education and some gentle anticipatory guidance .