Visibility

AAA

DEFINITION of 'Visibility'

The extent to which future projections are probable. Visibility is commonly used in discussing a company's future earnings. A lack of earnings visibility can be a sign that low, or no earnings, are on the horizon. Factors that may contribute to a lack of earnings visibility include regulatory uncertainty, price volatility for production inputs and a weak economy.


Visibility can also refer to a company's presence in the marketplace. Basically, a dominant company would have much greater visibility than a small player.

INVESTOPEDIA EXPLAINS 'Visibility'

For example, you'll often hear CEOs in a conference call tell analysts that they have "low visibility" for the upcoming quarter. This means they have little to no idea what future earnings will be, and cannot offer any earnings guidance to analysts or investors.


For a new company to increase its market share, it will need to increase its visibility by implementing effective marketing strategies.

RELATED TERMS
  1. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding ...
  2. Earnings

    The amount of profit that a company produces during a specific ...
  3. Chief Executive Officer - CEO

    The highest ranking executive in a company whose main responsibilities ...
  4. Conference Call

    An event during which investors can call in to hear a company's ...
  5. Price-Earnings Ratio - P/E Ratio

    A valuation ratio of a company's current share price compared ...
  6. Bulldog Market

    A nickname for the foreign bond market of the United Kingdom. ...
Related Articles
  1. Hard-To-Value Finisar Could Be In For ...
    Active Trading

    Hard-To-Value Finisar Could Be In For ...

  2. Investor Fatigue Setting In?
    Mutual Funds & ETFs

    Investor Fatigue Setting In?

  3. Operating Profit
    Investing

    Operating Profit

  4. EBIT (Earnings Before Interest and Taxes)
    Investing Basics

    EBIT (Earnings Before Interest and Taxes)

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center