Earnings Guidance, also known in the market as "forward-looking statements", provides an estimate of a company's expected results. It typically includes revenue estimates, margins, capital spending and other industry-specific metrics; these can have a major influence over analyst stock ratings and investor decisions to buy, hold or sell a security.
Every company is unique and many factors, such as information availability and peer earnings guidance must be taken into account when deciding whether issuing earnings guidance is the best choice for the company. There isn't a perfect formula or right answer as there exist several complexities associated with providing forecasts. This issue discusses some of the key factors to be considered when deliberating on this dilemma and aims to help management teams make a well-informed decision.
Guiding the Misguided: A Discussion on Earnings Guidance
To guide or not to guide? Issuers are consistently faced with this question. Oftentimes, they possess valuable and up-to-date information regarding their companies' future earnings forecasts; however, is it wise to disclose this information to the market in the form of guidance forecasts? While sharing guidance with the market has an upside, there are also a number of (negative) implications to consider before releasing this type of information...
i-advize Hosts IR Seminar for Mexican Business Students
New York City, September 21 , 2016
Melanie Carpenter of i-advize, Roberto Gutierrez and Leonor Quintanal of Universidad Panamericana
Universidad Panamericana students
Juan Carlos Gomez Stolk of i-advize
In an effort to support the educational development of Latin American students regarding the capital markets, on September 21st i-advize hosted a 1-day Investor Relations seminar at its New York City offices for 21 Universidad Panamericana (UP) students from Mexico. The seminar was part of UP's Business and Management Program; which is designed to help future young professionals understand the dynamics of the Mexican securities markets.
Melanie Carpenter, Managing Director and Juan Carlos Gomez Stolk, Vice President presented on topics regarding Mexican issuers in the international capital markets, as well as offered an overview on the topic of Investor Relations and its relevance. Other themes included a discussion on NYSE-listed Mexican companies, an overview of the earnings season, as well as recommendations on how to benefit from the Investor Relations area to make more informed investment decisions.
Following the presentations, students enjoyed a tour of New York's Financial District; including visiting local historic attractions, such as The New York Stock Exchange, the Museum of American Finance and Wall Street's iconic Charging Bull sculpture.