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
- Why Advanced Micro Devices Inc. Stock Plummeted 18% Today
- Things Just Went From Bad to Worse for Advanced Micro Devices, Inc.
- Why J.C. Penney Jumped 32% in the First Half of 2015
- Why AK Steel Holding Corporation's Shares Dropped 25% in June
- Why Caterpillar Stock Has Gone Nowhere So Far in 2015
- AZZ Galvanizes the Market