Wither quarterly earnings guidance?

More than 60 percent of the CFOs polled in a survey recently by Financial Executives International agree that public companies should stop offering quarterly earnings guidance. A lot of companies no longer do so. For those that do, it's a bit of a two-edged sword. Investors like it, but it opens up some potential liability and lots of thorny analyst questions. Many favor providing a range of earnings guidance once a year. There are some downsides to ceasing the practice suddenly. It would likely spook major shareholders and force them all to rely more on analysts. That ups the pressure on the financial operatives, so the net effect may be little relief. All in all, I do not look for this practice to stop on a dime. If a company is going to go for it, they need to lay out a timetable and basically prepare the financial community.

For more:
- here's an article from CFO.com
- check out FierceSarbox

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