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

How a visit to the dentist helped Muthar Kent get ahead in business

Want to know how to make it to the top of the beverage business? According to Muhtar Kent, it's all about the networking....

BLOG

What's on offer in the UK off-trade?

A red sticker to a shopper is like a red rag to a bull. And as the masses charge at the deals, UK off licences and supermarkets are finding new and novel ways to entice the herd. ...

BLOG

Hennessy's time capsule is for the ages

To celebrate its 250th anniversary, Cognac brand Hennessy is trumpeting a virtual time capsule, making a parallel between it and a barrel of Cognac....

BLOG

Monster Beverage Corp backs the right horse

Rarely do sponsorship deals pay off so quickly. ...

just-drinks homepage



Forgot your password?