Guidance

A company's own forecast of its future results, such as next quarter's sales or this year's spending. Stocks often move more on guidance than on past results.

Also called: financial guidance, sales guidance.

Related terms

  • Earnings per share: A company's profit divided by its number of shares. It's the most common way to measure profit, and the number Wall Street compares with its forecasts each quarter.
  • Price target: The price an analyst thinks a stock will reach, usually within 12 months. It's an opinion, not a promise, and analysts often disagree.

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