guidance
noun
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Definition of guidance
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Synonyms for guidance
Synonyms
adjuration, admonishment, admonition, advice, counsel, input
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Examples of guidance in a Sentence
Recent Examples on the Web
People need a purpose in life and guidance and motivation. — Thomas Curwen, Los Angeles Times, "From the street to the mayorâs office: Assessing L.A.'s new initiative on homelessness," 1 Sep. 2019 An innocent part of him really does just want to follow his mother's guidance and make people smile. — David Rooney, The Hollywood Reporter, "'Joker': Film Review | Venice 2019," 31 Aug. 2019 He's reunited backstage with his high school principal and guidance counselor. — Joey Guerra, Houston Chronicle, "Meet the high school counselor who Travis Scott says saved his life," 30 Aug. 2019 Hill, a freshman who enrolled this summer, participated in the university's bridge program â an intensive, seven-week undertaking that helps incoming freshmen acclimate to college through classes and academic guidance. — Orion Sang, Detroit Free Press, "Why Michigan football's Daxton Hill has plenty of routes to playing time," 29 Aug. 2019 If the Black Panther seeks spiritual guidance in the ancestral plane again, could Killmonger be there on the other side awaiting him? — David Betancourt, chicagotribune.com, "âBlack Panther IIâ: Five things we want to see in the 2022 sequel," 28 Aug. 2019 The Venezuela native is one of manager Bruce Bochyâs favorite players and has spoken at length about the support and guidance Bochy has provided him throughout his career. — Kerry Crowley, The Mercury News, "Giantsâ Pablo Sandoval needs reconstructive surgery on elbow," 24 Aug. 2019 That doesnât mean that substantial legal challenges donât exist â the Obama administrationâs Title IX guidance initiated a tidal wave of campus due-process violations, to take one example â but speech on college campuses is legally free. — David French, National Review, "Courage Is the Cure for Political Correctness," 20 Aug. 2019 For guidance on whether your agency is qualified, contact Republic community relations director Stacy Sullivan at 602-444-8749 or [email protected] Other tips: Do not wait until the deadline date to apply. — Stacy Sullivan, azcentral, "Nonprofits can apply soon for 2019-20 Season for Sharing grants," 20 Aug. 2019These example sentences are selected automatically from various online news sources to reflect current usage of the word 'guidance.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
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More Definitions for guidance
guidance
nounFinancial Definition of guidance
What It Is
In the stock world, guidance refers to public communication from a company regarding earnings expectations.
How It Works
The world of earnings guidance is large and fluid, whereby the management of publicly traded companies issue public estimates about what they expect earnings to be for the coming quarter. Guidance is based on management's experience, calculations and outlook, and it significantly influences the analysts covering the stock, because the analysts incorporate the information into their own research and earnings forecasts for their clients.
Before August 2000, it was legal for public companies to provide guidance to chosen analysts rather than publicly disclose their guidance. The SEC's adoption of Regulation FD in August 2000 prohibited this selective disclosure of material nonpublic information, and public companies must now publicly disseminate guidance and earnings estimates to analysts all at the same time.
When management becomes aware that the company probably will not meet the expectations it previously communicated, the company typically issues a profit warning via press release or conference call with analysts several weeks before announcing quarterly earnings.
Why It Matters
Guidance considerably influences stock prices because it helps investors evaluate a stock's potential. If investors expect a company to report, say, $0.10 in earnings per share next quarter, but the company actually reports $0.08, many investors might sell the stock and the company's stock price will therefore probably fall after the announcement. Conversely, if the company reports $0.12, the stock price will probably rise. The degree of "miss" or "surprise" influences how much the stock price will change. This is why guidance is usually a company's attempt to "soften the blow" or âfluff the pillowsâ before announcing earnings.
Some companies do not give guidance. They usually make that choice to reduce legal liability in the event that management's estimates are wrong. Some analysts claim that companies that do not offer any guidance often receive a "break" on stock price changes when these companies miss earnings, because the market is aware that the company's management has given the analysts (and their resulting estimates) no input.
Source: Investing Answers
guidance
noun
English Language Learners Definition of guidance
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noun
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Kids Definition of guidance
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