Guidance
A company's own published expectation for a future financial metric, such as revenue growth or margin.
How it is identified
Test: the statement is forward-looking, quantified or bounded, and issued by the company rather than by an analyst
Unit
qualitative
In depth
Guidance is information with an incentive attached: management benefits from being seen to beat its own numbers, which creates a systematic bias toward conservative targets and small beats. Indian companies guide less formally than American ones, often through management commentary in the earnings call and the management discussion and analysis section rather than through a formal range. Withdrawal of guidance is usually a more informative event than any guidance itself. Treat it as a statement of intent constrained by legal liability, and check it against the last several years of what was promised and what arrived.
Worked example
Management guides to 15% revenue growth and delivers 16% for four straight years. The pattern says the guidance is set conservatively, so the fifth year's 15% guidance is better read as a floor than as a forecast.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Guidance” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.