A recent article in IR magazine underscores the rising number of firms that have stopped issuing quarterly guidance since the pandemic began in March of this year, adding to an already growing contingent that have abandoned the practice over the last decade. “If this trend holds, it will be one of the few slivers of a silver lining of the last few months,” the article argues, adding that issuing quarterly earnings guidance creates “a critical… Read More
According to an article in Bloomberg, “the number of S&P 500 companies saying profits will trail analyst estimates outnumbered those saying they’ll beat them by a ratio of 8-to-1 in the third quarter,” the highest level shown by Bloomberg data going back to 2010. The article cites possible reasons, including: After their predictions were “trounced at record rates in the first half,” analysts lifted estimates to unrealistic levels. Companies are “making room for the quarterly… Read More