Skadden Arps – Corporate Finance Alert – Earnings Guidance

Public companies are not required by any law, rule or regulation of the Securities and Exchange Commission (SEC) or any stock exchange to issue earnings guidance. However, investors and analysts often expect to receive earnings guidance, especially for companies in certain industries. Should a company give earnings guidance? If so, how often should
it do so? When, if ever, should it update previously issued guidance outside of its normal financial reporting schedule? What kind of guidance should companies give? These questions raise difficult issues for public companies, and the current challenging economic environment has made these issues even more difficult to address.

The Decision Whether to Give Guidance, How Often and How Much

The Pros and Cons ….

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The Board Director Training Institute (BDTI) is a "public interest" nonprofit in Japan dedicated to training about directorship, corporate governance, and related management techniques. It is certified by the Japanese government to conduct these activities as a regulated nonprofit. Read a summary about BDTI here, and see a menu of its services for both corporations and investors here.

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