Earnings Guidance

Definition

A company’s estimate of its future earnings, often given as a range for the next quarter or year.

Management may give guidance during an earnings release or investor call and revise it as conditions change. Investors compare it with what analysts expected to gauge whether the company’s outlook has improved or weakened. Guidance usually refers to a specific reporting period.

Example

Company A tells investors it expects to earn between $2.00 and $2.20 per share this year. That range is its earnings guidance.