Press Release – Update Guidance Mid-Quarter
Here is an example press release for changing guidance mid-quarter. Short and Sweet.
Guidance Op Ed – Buffett and Dimon
Here is an op ed piece which appeared in the 6/7/18 WSJ on guidance. Interesting take. We do not believe this fixes the problem as consensus estimates still exist, but it is a move in the right direction.
Harvard Business Review – Providing Earnings Guidance?
Here is a nice article about earnings guidance from circa 2012. Read it not for the answer, but rather for some perspective. We still believe providing at least annual guidance is an important part of your IR approach. But, articles like this can help you formulate your plan of attack.
CFO Magazine – Letting Go of Guidance – November 2012 article
This is an interesting article about guidance. Although we still feel providing guidance is the easiest way to control Street estimates, this article does offer perspective. Clearly, you cannot sacrifice the long-term for the short-term.
McKinsey 2006 Guidance Report
In 2006, McKinsey & Co. issued a report on Guidance. They concluded that issuing guidance had no impact on liquidity or shareholder value creation. We agree…. to an extent.
Guidance Policy (included in press release)
Here is an example of a Guidance Policy included in your press release. This can help remind the Street about what you do or do not do in regards to Guidance.
Long Term Targets Example
Here is an example of what a company did on its IR website to highlight its long-term financial targets. Very slick and very clear.
Tips For Providing Guidance
Guidance is not as tricky of a topic as it may seem. Either you give it or you don’t. There are pros and cons to both. Here are some things to consider as you determine if you will issue guidance.