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

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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

Besides the improvements to the taxiways with upgraded lighting equipment, the money also will pay for the addition of aprons to accommodate more flights and the installation of new airfield guidance signs for safety, officials said. — Martin E. Comas, orlandosentinel.com, "$4.5M in federal money helps Sanford airport keep up with growth," 8 July 2019 However, industry officials consider that guidance rather than law because formal regulations haven’t been issued. — Judith Kohler, The Denver Post, "Hemp’s legal. Tell that to the financial service providers, social media companies, industry officials say," 7 July 2019 As of Saturday morning most model guidance was leaning toward no development of anything tropical. — Leigh Morgan, al.com, "All eyes on the Gulf next week for possible tropical mischief or heavy rain," 6 July 2019 In the same month the Scottish government was also forced by Christian campaigners to withdraw guidance to schools on their approach to transgender pupils. — The Economist, "As London prepares for Pride, a row simmers in the LGBT community," 4 July 2019 The pizzeria will operate as a nonprofit under the ownership and guidance of the West Side Catholic Center. — Marc Bona, cleveland.com, "Ohio City Pizzeria to open with unique non-profit ownership," 3 July 2019 Adobe’s thorough and nuanced responses can serve as guidance to other companies in similar situations, Mr. Kaplan said. — Mark Maurer, WSJ, "SEC Pushes Adobe to Expand Disclosures Under New Accounting Rules," 3 July 2019 The Commerce Department did not respond to requests for comment and has not released any additional guidance on Trump's remarks. — Clare Duffy, CNN, "Trump said he'd ease up on Huawei. Questions remain about what that means," 3 July 2019 In Gundy, all four liberal Justices, in a plurality opinion by Justice Elena Kagan, hewed to the prevailing approach, finding that Congress provided enough guidance limiting the agency’s discretion to pass constitutional muster. — Jeannie Suk Gersen, The New Yorker, "The Supreme Court Is One Vote Away from Changing How the U.S. Is Governed," 3 July 2019

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

11 Jul 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