Analysts and investors talk a lot about a company's guidance, which is the forecast companies give for how things such as earnings and sales will be in the future.
Strong guidance that predicts, for instance, a substantial boost in sales is seen as a good sign. Also, if a company is "guiding" for $0.45 a share in earnings and ends up with $0.48, that's a good sign that can push the stock higher. Coming in with results below guidance can push a stock lower as investors think something went wrong.
Related Fool Articles
- [LINK TITLE]
Recent Mentions on Fool.com
- DigitalGlobe Inc Sets the Stage for Growth With Another Solid Quarter
- Why J.C. Penney Company Stock Is Plunging After Hours
- Why Universal Display Corporation Went Dim After Mixed Earnings
- Splunk, Inc.'s Cloud Investments Drive Another Earnings Beat
- EnerNOC, Inc. Earnings: Revenue Jumps, but Loss Widens
- MasTec Shrugs Off the Energy Slowdown -- for Now