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
- Hold Your Horses, IDEXX Laboratories, Inc. Earnings Are Better Than They Appear
- Why Amazon.com Inc. Stock Popped Today
- 3 Things to Watch When iRobot Corporation Reports Earnings
- Robert Half International's Earnings Point to a Better Jobs Market
- Altria Group Inc Earnings: Sales Gains Send Income Soaring, but Should Investors Worry?
- Moog Sees a Slower 2015 as Earnings Miss the Target