guidance

noun guid·ance \ ˈgī-dᵊn(t)s \

Updated on: 13 Oct 2017

Definition of guidance

1 :the act or process of guiding

2 a :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

See guidance defined for English-language learners

See guidance defined for kids

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 of guidance from the Web

Larry Scott should look at the successes of the Big Ten Network and SEC Network for guidance.

— jon wilner, The Seattle Times, "‘Something has to change’: Here’s what media analysts think of the Pac-12 Networks," 29 Aug. 2017
Under the guidance of their parents, both Mischa and Sascha became world-class juniors and now top 30 ATP players.

— Longreads, "Family Band," 22 Aug. 2017
But Holland eventually declined the offer, preferring to rehab under the guidance of agent Scott Boras and head to the free-agent market again before the 2017 season.

— rustin dodd, kansascity, "Greg Holland, who Royals tried to re-sign, returns to KC this week as Rockies’ closer," 21 Aug. 2017
One of the major challenges for Müller, the son of a postal worker, had been geographic. Born and raised in Luxembourg, a small country with no tennis tradition, he was left without career guidance or a federation able to support him financially.

— ben rothenberg, New York Times, "Gilles Müller Finds Success in Tennis at an Age When Others Retire," 16 Aug. 2017
Teachers, librarians, guidance counselors, principals and assistant principals in public, private and parochial schools are eligible to apply.

— Post-Tribune, "Community calendar," 11 Aug. 2017
Auburn improved nearly across the board defensively last season -- save for passing defense, which dipped slightly from 2015 -- in its first year under Steele's guidance.

— tom green, AL.com, "Kevin Steele credits Will Muschamp for 'setting the table' for Auburn's defensive success," 2 Aug. 2017
Nearly a week later, the Department of Defense still has not followed up on the tweet, which was never explained in detail and was not followed by any guidance, FAQ, or white paper from the White House.

— maya kosoff, The Hive, "Chinese State Media Mocks Trump’s “Emotional Venting” on Twitter," 1 Aug. 2017
Aroma Roots' Naperville location will include a face mask bar where customers can receive guidance in self-application for the face masks in 45-minute to one-hour sessions.

— erin hegarty, Naperville Sun, "Board & Barrel open, Lil J's Bohemia closes in downtown Naperville," 28 July 2017

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.

Origin and Etymology of guidance

see ¹guide

NEW! Time Traveler

First Known Use: 1590

See Words from the same year

guidance Synonyms

Synonyms

adjuration, admonishment, admonition, counsel, advice, input

Financial Definition of GUIDANCE

guidance

noun

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 Defined for English Language Learners

guidance

noun

Definition of guidance for English Language Learners

: help or advice that tells you what to do : the act or process of guiding someone or something
: the process of controlling the flight of something (such as a missile)