What Is Earnings Guidance? Raised, Lowered, or Maintained

Forward guidance is management's projection of future financial performance. It's one of the most market-moving elements of an earnings call.

Types of Guidance

Revenue guidance: Expected top-line sales for next quarter or full year, usually given as a range.

EPS guidance: Expected earnings per share, also typically a range.

Margin guidance: Expected profit margins — gross, operating, or net.

Raised, Lowered, or Maintained

Raised: Management increased their outlook from prior guidance. Generally bullish — suggests business is performing better than expected.

Lowered: Management reduced their outlook. Usually bearish — indicates headwinds or deteriorating conditions.

Maintained: No change from prior guidance. Neutral — suggests stable conditions.

Initiated: First-time guidance for a period. Provides a new baseline for expectations.

Withdrawn: Management pulled guidance entirely. Often signals significant uncertainty.

Why Guidance Matters More Than Results

Markets are forward-looking. Quarterly results are already priced in by the time they're reported. Guidance shapes expectations for future quarters, making it the most impactful part of an earnings call.