Company Guidance Close to the High End of its Historical Range

Below is a historical chart of the spread between the number of US companies issuing positive guidance versus negative guidance. We took the 1-month average of the daily spread and calculated it on a rolling basis.

Since 2000 there have only been two periods (4/02 and 4/04) where the one-month average showed more companies guiding higher than lower. One interesting aspect of the chart is that although many investors worry that future earnings expectations are too high, on a net basis, company guidance remains close to the high end of its historical range.

click to enlarge

Comments

[Daniel Houston]

Nice work.

2006 Sep 15 03:15 AM