Topic
Earnings Guidance
10 published works
The CLS Blue Sky Blog
Does Lowball Guidance Work?
By Jing Chen, Michael J. Jung, Michael (Minye) Tang
Quarterly earnings guidance is a controversial practice. Critics say it can cause companies to focus on short-term profits, while others argue that it sets reasonable market expectations and enhances stock…
Corporate and Securities Law
Court Dismisses Claim Against Board for Optimistic Earnings Guidance
Securities Law Exchange
COVID-19: Bass, Berry & Sims’ Survey of Earnings Release Guidance Practices in the Wake of the Pandemic
By Kevin Douglas, Tatjana Paterno, Bass, Berry & Sims
In a previous blog post, we discussed certain high-level considerations for first-quarter 2020 earnings releases and guidance in the context of the macroeconomic uncertainty brought about by the novel coronavirus…
Cleary M&A and Corporate Governance Watch
Webcast Recording: The Conference Board’s “Recent Developments Related to Earnings Guidance”
On Thursday, October 16, 2014, Cleary Gottlieb and The Conference Board hosted the webcast "Recent Developments Related to Earnings Guidance" from 3-4 PM. The webcast was moderated by Marcel Bucsescu, Assistant Director…
The D&O Diary
Securities Litigation Loss Prevention: Managing Earnings Guidance
In my former days on the carrier side, our D&O insurance group advocated for our policyholders a program of securities litigation loss prevention, on the theory that there are steps…
The D&O Diary
Earnings Guidance: Contrasting Perspectives
In a recent post (here), I discussed the recent work of two blue-ribbon groups focused on eliminating "short-termism" and recommending, among other things, the elimination of quarterly earnings guidance. The…
The D&O Diary
Reports About Earnings Guidance, Securities Litigation Frequency, and The D & O Insurance Marketplace
Eliminate Quarterly Guidance? On July 24, 2006, the CFA Centre for Financial Market Integrity and the Business Roundtable Institute for Corporate Ethics issued a Report entitled "Breaking the Short-Term Cycle:…
The D&O Diary
Earnings Guidance: Meet, Beat or Delete?
The classic statement on the pitfalls of providing optimistic earnings guidance appeared in Warren Buffett's Letter to Shareholders in the 2000 Berkshire Hathaway Annual Report (only an excerpt is reproduced…
Corporate & Securities Law Blog
SEC Brings Action for Reaffirmation of Earnings Guidance
The SEC recently settled an enforcement action against Flowserve Corporation, its CEO and Director of Investor Relations for reaffirming the company's previous earnings guidance in a private meeting with analysts,…
Corporate & Securities Law Blog
Companies Reduce Quarterly Earnings Guidance
A recent survey from the National Investor Relations Institute ("NIRI"), accessible at http://www.niri.org/irresource_pubs/alerts/ea050330.cfm, shows that more companies now offer less guidance, and that companies are moving towards the practice of…