Guidance (earnings guidance)

Guidance is a company's own forecast for the next quarter or year, given with results. The quarter was priced weeks ago; the guide moves the forward number the price leans on, so a beat with a cut guide falls, as Broadcom did, and sometimes a cut that was feared gets paid instead. It lands after the close into a thin book.

Go on

In MochaLearnLearn how to read US earnings
  • Earnings season / earnings reportEarnings season is the weeks after each quarter ends when most US companies report, starting with the big banks around…
  • Forward P/EForward P/E is the share price divided by the earnings analysts expect over the next twelve months. It is built on a…
  • Earnings callThe earnings call is the conference call where management discusses results and takes analyst questions, usually…
  • Net interest incomeNet interest income is what a bank earns on the gap between what it pays depositors and what it charges borrowers.…
  • Gap up and gap downA gap is a price opening far from where it last traded, with nothing in between. US stocks gap at 7:00 PM IST because…
  • Pre-market and after-hours tradingPre-market and after-hours are the thin sessions around the US day: pre-market from 1:30 PM IST, after-hours until…

Where it comes up