Earnings Guidance: Value-creating or value-destructive?

Tuesday, June 12, 2018 | 1:30PM - 2:30PM | Room: Lafleur 1&2  |   Concurrent Round 4

 |  Jonathan Bailey | Kelly Tompkins | Ariel Babcock | Lisa Rose, IRC |

Some corporate leaders have begun opting out of providing earnings guidance, arguing that short-term decisions to beat guidance will be value-destructive in the long run. Others argue that providing guidance creates value because it reduces shareholder lawsuits, increases analyst following, and reduces uncertainty.  An IR professional needs to be an informed and active participant in the debate and discussion that ensues when a company is considering whether or not to provide guidance, or making the decision to terminate or change its current practice. This session aims to equip IR professionals with the necessary information to make the business case for decision-making related to pros and cons for providing guidance based on research and facts, not just opinions.

Learning Objectives: 
  • Learn the facts on the impact of guidance on valuation and volatility
  • Determine whether the consequences of not providing guidance are worth it for your company
  • Learn the right and wrong ways of providing guidance – some basic principles to follow