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
- Heico Corp. Stock Slumps Then Soars. What Happened?
- Hewlett-Packard Company Earnings: A Solid Quarter as Separation Nears
- 5 Things Cisco Systems, Inc's Management Wants You to Know
- Williams Companies' $13.8 Billion Kinder Style Merger: 3 Things Dividend Investors Need to Know
- Intuit Earnings: 2015 Is Turning Out to Be a Transition Year
- 5 Things Dominion Resources, Inc.'s Management Wants You To Know