Companies work hard to lower earnings bar
By Daniel at 26 October, 2009, 10:10 am
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I found this good article last night on MSN money how the revenue expectations are purposely set low by companies. When I checked back this morning, it was gone already. Imagine that…
Managing expectations helps beat analysts forecasts even in bad times
“CHICAGO - More than 80 percent of major companies reporting third-quarter results this month have beaten Wall Street expectations. So is business that good? No. Are companies gaming the system? Yes.
Corporate America has a habit of low-balling the earnings forecasts used by analysts to determine their estimates. That way, the bar is lower, and companies can easily jump over when the quarter’s results are announced — even if profits and revenues have fallen off a cliff.”
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