Creative Investor

GE's Earnings Miss: What Ever Happened to Warning Investors First?

I don't agree with the author's point that companies absolutely must forewarn investors about what is going to happen on a bi-weekly or monthly basis or whatever. I mean, seriously, what difference would it have made? GE simply would have taken the fall two weeks earlier. Any time companies provide guidances it increases speculation in the market since markets are given a reason to speculate. Obviously, management should provide investors with expectations for the coming year, but they bear absolutely no responsibility to give you a warning that they will miss the quarterly earnings estimates two weeks in advance.