Company guidance
Management's outlook for future revenue, margins, investment or other performance measures.
Plain languagePractical exampleConnected reading
01
What is it?
Management's outlook for future revenue, margins, investment or other performance measures.
02
Why does it matter?
Markets often react more to changes in the outlook than to the reported historical result.
03
How should it be read?
Check the range, assumptions, FX effects, organic growth and changes from prior guidance.
04
Common mistake
Treating management guidance as a guaranteed outcome.
A simple example
Unchanged revenue guidance with a lower margin range can indicate cost pressure.