The volatile markets of 2004 have left CFOs and sell-side analysts at opposite ends of a high-wire balancing act. When analysts push for more ‘acceptable’ earnings estimates, CFOs worry more about meeting the Street’s targets than taking care of business – so the estimates tail wags the equity dog. And once the CFO spins the data to meet expectations, the Street’s credibility is threatened.
Faced with these risks, it’s not surprising some corporations are choosing to abandon earnings guidance. While not yet a full-blown trend – 76 percent of companies are still providing earnings guidance, according . . .
Enjoy access to this and more – for free!
Log in or create your free My IR – Essentials account to:
- Get access to 3 free IR deep dives
- More than 100 pieces of insight, plus our exclusive CFO interviews
- Save favorites and get personalized content on your dashboard
- Enjoy 10% off all IR forums
