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

Carlsberg - Right. Stop that: It's silly

It would appear that the folk at the UK arm of Carlsberg have this year found the 'gimmicky' drawer in the marketing office....

BLOG

No, I don't wish to see what you're about to drink, thanks

It's a popular grizzle and one I'll admit to having on at least one or two occasions… a day. Why do people post photos of their food and/or drink on to my social media feed?...

BLOG

Fridges see cool returns for Treasury Wine Estates

After a 2014 it'll want to forget, Treasury Wine Estates has some good news....

BLOG

Making gin in the shed

The garden shed is usually home to some spiders, a lawnmower and a few half-empty paint tins. ...

just-drinks homepage



Forgot your password?