Friday, April 17, 2009

What’s New With Earnings Guidance, Press Releases?

Changes are afoot with respect to earnings guidance practices and press release practices, as noted by Broc Romanek in yesterday in his post Facing an Unpredictable World: How to Change Earnings Guidance Practices, by Dominic Jones in the IRWebReport yesterday NYSE, Nasdaq Move to Scrap Compulsory Press Releases, and Broc Romanek in today in NYSE Finally Moves to Scrap Compulsory Press Releases.

FEI’s research affiliate, the Financial Executives Research Foundation (FERF) is in the process of updating its report, Meeting the Street, A Discussion of Earnings and Other Guidance Provided to Investors. The original report, published in 2003, was authored by Robert (Bob) Kueppers and Greg Weaver of Deloitte. At the time, Kueppers was Senior Technical Partner at Deloitte, he is now Deputy CEO. Weaver was National Managing Partner of Audit and Enterprise Risk Services (ERS).

FERF is now working with Deloitte to update this report, and would like to interview financial executives from public companies of all sizes, that do and do not provide guidance to learn why. Please contact Bill Sinnett, Director of Research, at if you would like further information.

FERF reports are available by free download to FEI members, and by purchase from nonmembers. See the FERF bookstore.

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1 comment:

Whenitcounts said...

An interesting paradigm of projected Goldman Sachs Earnings is about to be challenged. The corporation of US Silent Partner has based on stress test, Goldman Sachs revisions to guide lower and margin the standard based upon inside TARP involvement and market advisors allowed current practices.

The actual number for the next three fiscal quarters is as follows:

Current quarter adjusted whisper number has been moved to 7.01 and made the actual expected guidance with any number below this estimate is to be considered missing on earnings for this current quarter for Goldman Sachs reporting.

The following reporting fiscal year Dec. 2009 adjusted whisper number has been moved to 20.18 and made the actual expected guidance with any number below this estimate is to be considered missing on earnings for this current fiscal year.

The following reporting projection for the whisper number for Fiscal Year Nov. 2010 has been moved to 13.04 and made the actual expected guidance with any number below this estimate is to be considered missing on earnings for this fiscal year period.

We do not expect any earnings surprises from Goldman Sachs based with these adjusted whisper numbers US Silent Partner had rated Goldman Sachs as fully valued at their current share price projection levels between 175.45 and 191.21 with a downside potential due to further stress seen upon the financial sector as seen with possible commercial exposure to hold the financial institutions has high risk for collapse.

Basing further downside risk raises Goldman Sachs adjustment on financial advisors/analysts as they employ and considered as self regulated at this current time due to TARP government internal knowledge points. This raises the higher risk of these internal advisors/analyst in making calls and recommendations to the markets to buy recommendations for their counter financial intuitional sector of partners within the financial sector. Bank of America and other upgrades of other institutions are considered an artificial high risk creating a false bottom for many investors basing financial buys based on such recommendations. These recommendations should be not allowed in this current environment while under current partnership with TARP. Need for congress to ensure the stability of the financial markets and continued recovery must regulate stronger. This is all based fully upon the recorded testimonies of Timothy Geithner and or Federal Reserve Chairman Bernanke.

The fact of injection liquidity and the financial crises is still driven by the continued flow of projected unemployment rising above 10.9 percent, with a projected true unemployment to hit 12.8 percent before job stimulus may occur (Jobless Recovery Potential). This stress is not calculated as current models used by the projections made by Goldman Sachs and other formal analysts making recommendations within this current market environment to financial investors.

This discussion post is being written on the heels of an assignment given while obtaining a degree in Business Finance. These are the views based upon the reports and stress tests as read along with all the testimonies to date by key governmental and business leaders.

Thank you for the use of this form. Our professors use it to grade our discussion posts for ultimately our grade and development of our doctoral thesis.