Today’s New York Times has an op-ed piece by Bob Pozen advocating that more (indeed, many more) US companies eliminate the quaint notion of providing guidance regarding earnings expected in the next quarter.
Hear, hear! This is one of those silly notions that Wall St. analysts, over the years, have foisted on CEOs.
Pozen’s right, of course. Many more public company CEOs should simply refuse to provide guidance about the next quarter’s results. This is one of those practices that produces lots of stupid behavior inside companies. Investors deserve better – and it’s certainly not by having CEOs guestimating their upcoming quarterly results.