Is it time to give up earnings guidance?
In these unpredictable times, more companies seem to be giving up on the venerable idea of earnings guidance. A survey by the National Investor Relations Institute has found that about one-third of the 600 corporate respondents said they have changed their guidance policies; most eliminated or cut back on the guidance they provide about earnings and revenue, notes the AP. This is understandable given the uncertain times. Faulty guidance can lead to whole host of IR-related problems. But limiting guidance can also cause issues. Consider Intel; it reported stronger-than-expected first quarter results and said the "computer market had bottomed out." But it did not provide a specific revenue forecast and the share promptly tanked, notes the AP. Article




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