How to kill Quarterly Earnings Guidance

Harvard Business Review / June 2014
Gabriel Karageorgiou, Daniela Saltzman, George Serafeim

Quarterly earnings guidance has outlived its usefulness.

There are instances when it might be perfectly legitimate and value enhancing to issue earnings guidance in an effort to inform the market about material disruptions, shifts in the business model etc., but on the whole, the practice is not a helpful way of building a sustainable business that is geared to succeed in the long-term.

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