guidance

noun

guid·ance | \ ˈgī-dᵊn(t)s

Definition of guidance

1 : the act or process of guiding

2a : the direction provided by a guide couldn't have done it without her guidance

b : advice on vocational or educational problems given to students provides guidance on how to apply for scholarships

3 : the process of controlling the course of a projectile by a built-in mechanism problems with the missile's guidance

Synonyms More Example Sentences Learn More about guidance

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Examples of guidance in a Sentence

I couldn't have done it without her guidance. We need more guidance on how to handle these unusual cases.

Recent Examples on the Web

The science behind pelvic floor physical therapy Pelvic floor physical therapy is a way of trying to strengthen the area to alleviate symptoms under the guidance of a physical therapist who specializes in pelvic floor disorders. — Cassie Shortsleeve, SELF, "What to Know About Pregnancy, Childbirth, and Your Pelvic Floor," 10 May 2019 Mirror exposure therapy is a relatively new psychological approach in which participants observe themselves in a full-length mirror and talk about their bodies with the guidance of a therapist. — Suzanne Oliver, WSJ, "How a Mirror Can Help People Who Hate Their Bodies," 29 Apr. 2019 Doctors recommend it only under the guidance of a physician. — Mark Barna, Discover Magazine, "Not So Fast," 24 Sep. 2018 Under the guidance of new crown prince Mohammed Bin Salman, Saudi Arabia has embarked on a series of sweeping reforms – some of them angering the country’s conservative base. — Benjamin Hall, Fox News, "Saudi Arabia cuts ties with Canada after it urges activists' release: 'Blatant interference'," 6 Aug. 2018 The show wrapped with a look at the future of the program, which so far seems to have corrected its course under the guidance of no-nonsense coach Dan Hurley. — Chris Brodeur, courant.com, "UConn Insider Podcast: How The Fracture Of Kevin Ollie And His Alma Mater Became A Full-Fledged Feud," 3 July 2018 For nearly two decades, Memphis Minnie’s was anchored in San Francisco’s Lower Haight neighborhood, serving slow-smoked barbecue to the city’s masses under the guidance of owners Gail Wilson and her husband, Bob Kantor. — Justin Phillips, SFChronicle.com, "SF restaurants struggle for balance in prices, service as wage hike arrives," 29 June 2018 None of this would be possible without the guidance of teacher Michael Hipps, who undertakes the production of the show year after year, and all the teachers who act as sponsors for each performing group. — Melissa Whatley, baltimoresun.com, "Justin, Miley have nothing on these eighth-graders," 27 June 2018 Cafe Annie is a casual elegant dining restaurant serving innovative regional cuisine, under the guidance of owner, Robert Del Grande (nominated by The James Beard Foundation as a semifinalist for Outstanding Chef 2010). — Houston Chronicle, "Cafe Annie," 27 June 2018

These 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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Dictionary Entries near guidance

Statistics for guidance

Last Updated

16 May 2019

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Time Traveler for guidance

The first known use of guidance was in 1590

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More Definitions for guidance

guidance

noun

Financial 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 “fluff the pillows” 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