guidance
noun
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Definition of guidance
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Synonyms for guidance
Synonyms
adjuration, admonishment, admonition, advice, counsel, input
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Examples of guidance in a Sentence
Recent Examples on the Web
Justice Department officials have tried to combat this by issuing guidance and directing prosecutors to target culpable individuals in corporate crime cases, but the charges typically stick to low- and mid-level employees. — Samuel Rubenfeld, WSJ, "Cognizant Case Shows How Firms Can Avoid Charges Even Amid Alleged Wrongdoing," 20 Feb. 2019 The Longmire Museum, open daily from 9 a.m.-4:30 p.m., provides general park information, winter activity guidance and backcountry permits. — Carol Pucci, The Seattle Times, "For a visit without the crowds, head to Mount Rainier in winter," 20 Feb. 2019 Don't: Ask for Opinions Don't let the opinions of friends and family guide your hairstyle—wearing it up, down, in a twist, or in a bun is up to you alone, with the guidance and expertise of your wedding day hairstylist. — Harper's Bazaar Staff, Harper's BAZAAR, "How to Avoid the 10 Biggest Hair Mistakes Brides Make," 13 Dec. 2018 After all, her job is to give policy guidance and move around resources around to carry out those policies. — Alexia Fernández Campbell, Vox, "Elizabeth Warren confronts Trump nominee for her role in family separations," 19 July 2018 Christina relied on Storey’s guidance during her most difficult times and wanted to pass on her positive experience to others. — Emily Strohm, PEOPLE.com, "Flip or Flop's Christina El Moussa Will Open Drug and Alcohol Rehab Centers: ‘It’s My Calling’," 5 July 2018 With the assistance and guidance of her father, Geff Ottman, Anna designed and built a coffee table that holds children’s board games. — Lisa Peklo, Howard County Times, "Young Girl Scouts earn Gold and Silver awards [West Friendship]," 14 June 2018 Too bad Hollywood kids seem to have to parental guidance as with alot of kids in this country. — Tamara Fuentes, Seventeen, "Jacob Sartorius Calls Millie Bobby Brown “Stunning” After Instagram Haters Tell Her To “Act Her Age”," 14 Jan. 2019 But North Korea's packaging of the first images of Moon's visit to its capital this week, as broadcast on state television a full day after the rest of the world saw them, offers some guidance — and some important insight. — Fox News, "AP Analysis: In North and South Korea, 2 views of summit," 19 Sep. 2018These 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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More Definitions for guidance
guidance
nounFinancial 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
English Language Learners Definition of guidance
See the full definition for guidance in the English Language Learners Dictionary
guidance
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Kids Definition of guidance
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