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

Scotch is great, says Scotch Whisky Association

To support the release of its latest report, entitled ‘The Economic Impact of Scotch Whisky Production in the UK’, trade body The Scotch Whisky Association has released this video, highlighting the si...

BLOG

At Coca-Cola Co, it's not just the head count that's getting smaller

The Coca-Cola Co is in the middle of a major restructuring plan, affecting jobs around the world. The company is also downsizing its packaging....

BLOG

Polish vodkas prove their worth in Ukraine

One, perhaps minor, consequence of the conflict in Ukraine appears to be a fall in sales of Russian vodka in the country....

BLOG

Diageo distilleries welcome you to their virtual world

Diageo has jumped onboard Google's latest interactive maps and is opening up the virtual doors to four of its distilleries. ...

just-drinks homepage



Forgot your password?