Blog: Chris Brook-CarterEnd of forecasting?

Chris Brook-Carter | 28 October 2003

Should companies stop giving out earnings-per-share guidance? Well it would make my job here a lot harder, but I don’t suppose the analysts at one researcher had that in mind when they suggested just that this week.

According to a survey by the Association for Investment Management and Research, nearly 70% of its 1,050 members worldwide said the practice of corporate management providing specific earnings forecasts could lead to "earnings management," or manipulation of financial reports. And 51% said such guidance would increase the volatility of a company's stock.

According to the survey the money managers would prefer corporate executives to provide them with the "general trend and performance information" about their companies so that the investment professionals can draw their own conclusions.

Coca-Cola has already gone down this route and it will be interesting to see if others follow in the post Enron environment, when any suspicion of "earnings management" is likely to have dire consequences.

BLOG

Pernod Ricard's Havanista remains poised to capitalise post-embargo

Spotted in Havana this week – a healthy stock of Pernod Ricard's Havanista rum. ...

BLOG

Does Oscar glory beckon for 'Mr Heineken'?

Alcohol always has a big presence at the Oscars, albeit mostly in a supporting role....

BLOG

Is pisco preparing to make some noise?

Business is booming at copper pot still makers Chalvignac - you can tell from the loud noise coming from its factory floor in the French town of Jarnac-Champagne. ...

BLOG

Heineken has eye on the (soccer) ball in US

Heineken is betting big on the long-term opportunity around soccer in the US. ...

just-drinks homepage



Forgot your password?