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
- Australia Helps Vail Resorts Narrow Its Losses
- Apple, Inc. Stock Could Deliver Big Gains in 2016. Here's Why.
- Can Glu Mobile Bounce Back From Last Week's 13% Drop?
- 5 Things Continental Resources Inc. Wants You to Know
- Big Lots Inc. Posts Smaller Operating Loss
- Can GoPro Bounce Back From Last Week's 11% Drop?