The Company uses ongoing earnings guidance
to provide investors with management's expectations of ongoing financial performance over the period presented.
To assess the current state of earnings guidance
, the author compiled company-issued guidance information recorded by First Call, an investor information service owned by Thomson Reuters, for constituent firms of the S&P 500, an index of large U.
A notable study by Hutton, Miller, and Skinner (2003) examines verifiable forward-looking statements that accompany earnings guidance
and finds that managers tend to supplement good-news earnings guidance
with such statements to enhance the credibility of the earnings guidance
In a survey of more than 100 sell-side analysts, 76% of the respondents indicated that they believe the stock market would penalize companies that suspend earnings guidance
in this environment.
The company also provided 2008 operating earnings guidance
for each of its business segments, which is shown in the table below along with the current 2007 operating earnings guidance
While the practice of earnings guidance
is one of the most controversial issues within the financial community today, the views of sell-side analysts have largely been absent from this debate," said Claire Koeneman, Co-President of Financial Relations Board.
Our 2007 earnings guidance
illustrates the improved financial condition of both our Detroit Edison and MichCon utilities, the ongoing implementation of our Performance Excellence Process and continued strength in our non- utility businesses," said Gerard M.
Among CFA Institute members who think that providing earnings guidance
is not a best practice, the main reason for their disagreement is the belief that companies should focus on their long-term performance (91 percent).
NYSE:FFG) today announced its earnings guidance
for 2007 and scheduled its fourth quarter 2006 earnings release, conference call and webcast.
Management is revising earnings guidance
to reflect the impact of the transactions described above and other divestiture related costs.
2006 Earnings Guidance
Reaffirmed; Acquisition of Beijing Franchisee Announced
The Company reaffirmed its 2006 earnings guidance
range of $3.
Based on current information relating to the Company's preliminary analysis of certain rebate transactions, the Company is announcing that fiscal 2007 earnings guidance
issued on September 11, 2006 should not continue to be relied upon.
Joey Jacobs, Chairman, President and Chief Executive Officer of PSI, remarked, "We are pleased to increase our earnings guidance
for 2007 as a result of our anticipated acquisition of ABS.
CEG's third-quarter report included an increased earnings guidance