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Guidance

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Dictionary Says

Definition of 'Guidance'

Information that a company provides as an indication or estimate of its future earnings. Guidance is an "expected results" issue from a company to shareholders and market watchers as to how they envision a future period turning out. Such guidance will typically include revenue estimates, along with earnings, margins and capital spending estimates. Also known as "earnings guidance."
Investopedia Says

Investopedia explains 'Guidance'

Guidance reports estimating a company's future earnings can have a major influence over analyst stock ratings and investor decisions to buy, hold, or sell the security. For instance, if a company's management disseminates guidance figures which are well below what those on the Street would be expecting for a future period, the most likely outcome from analysts would be a downgrade or at the very least lowered estimates.

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