Mantle or Mays? Mary Ann or Ginger? Earnings Guidance?
We always seem to be debating something. Mantle or Mays… Mary Ann or
Ginger… And, of course, earnings guidance [Ed. Note: Some of you may
have to consult Google, your parents or grandparents for the first two references]. While
I do not expect that this post will resolve any of the aforementioned, I will
present some pros and cons on the subject of earnings guidance.
Over the recent past, a number of companies, including many household names,
have discontinued the practice of providing earnings guidance due in large
part to the economy. One CFO was heard to opine, “Let ‘the Street’ do
it. They do it better than we do.”
Let’s look at both sides of the issue: