(redirected from guide)
Also found in: Dictionary, Thesaurus, Medical, Acronyms, Idioms, Encyclopedia, Wikipedia.


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).
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
She congratulated the guide participants of Pakistan Day Parade for giving such wonderful performance.
Dr Abdul Kareem al Mugheiri, dean of Oman Tourism College, delivered a speech on the role of the college in promoting the profession of tourist guide through courses and training students at work sites.
'The Ministry of Tourism should encourage tour guide skills because it always provides training courses, so what do those guides do now?,' he asked.
New Delhi [India], July 12 ( ANI ): The Jodhpur Tourist Guide Association of Rajasthan has approached Bollywood Superstar Shah Rukh Khan with an Honorary Membership.
- US-based medical devices, biologic materials and cellular therapies provider Cook Medical has launched a two-in-one wire guide called the Motion Hybrid Wire Guide, the company said.
Charity Guide Dogs is asking people to wear their brightest clothing to raise much-need funds.
The 2014 Camp Guide includes camps for every age and interest, from half-day to full-day traditional day camps to specialty camps, teen camps and sleepaway camps.
To a query, she stressed the need for mass awareness campaign regarding the girl guide movement, adding that the movement worked with the local communities, non-governmental organizations (NGOs) and public as well as private sector schools in the past with complete avoidance from exposure.
Safely maneuvering large equipment, especially in tight spaces, requires properly trained and positioned ground guides.
He said the requirements for obtaining a tourist guide license is available even if the applicant does not have an education degree.
SAN JOSE (CyHAN)- A Costa Rican tour guide has a lucky escape from being a lunch for a crocodile.