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StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
A company's prediction of future earnings and revenue.
Why It Matters
Guidance often matters more than current earnings. A company can beat this quarter but crash if they lower next quarter's guidance. The market is forward-looking - it prices stocks based on future expectations, not past results.
Key Points
- Companies give guidance ranges (e.g., 'we expect $2.50-$2.70 EPS next quarter')
- Raising guidance = bullish signal; lowering guidance = watch out
- Some companies (like Apple) don't give guidance, which increases earnings volatility
Related Terms
Common Questions
A company's prediction of future earnings and revenue. Guidance often matters more than current earnings. A company can beat this quarter but crash if they lower next quarter's guidance.
Guidance often matters more than current earnings. A company can beat this quarter but crash if they lower next quarter's guidance. The market is forward-looking - it prices stocks based on future expectations, not past results.
Companies give guidance ranges (e.g., 'we expect $2.50-$2.70 EPS next quarter')
Raising guidance = bullish signal; lowering guidance = watch out
Some companies (like Apple) don't give guidance, which increases earnings volatility