Guidance

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.

Expanded Definition

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]

Related Terms

• RELATED TERM HERE

Recent Mentions on Fool.com

• Gevo Begins Countdown to Ethanol's End
• Should Long-Term Investors Go for Dividends or Blue-Chip Bonds?
• Why MannKind Is Poised to Pull Back
• Investors Expect the Best From the Fed -- but Are They Prepared for the Worst?
• Is Chesapeake's New CEO Overpaid?
• Meet the Utica Shale's Top Producer