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
- China, China, China! Coffee, Coffee, Coffee! Oh, and Tea, Too: Starbucks' Future Summed Up
- Check Point Software Technologies Ltd. Delivers Growth and High Margins
- Strong U.S. Dollar, Milder Winter Help Canadian National Railway Stay on Track in Q1
- International Business Machines Corp. Delivers a Mixed Q1 Amid Heavy Headwinds
- 3 Things You Don?t Want to Miss in Caterpillar Inc.?s Earnings Report This Week
- How Elon Musk Almost Sold Tesla Motors, Inc. to Google