Term · Regulation & Capital-Market Communication
Guidance
In briefGuidance is the company's self-published forecast of future metrics such as revenue or earnings. It steers capital market expectations and serves as a benchmark for later actual figures. It is not an audited commitment; repeated cuts or very wide ranges point to low planning certainty.
Definition
Guidance is the forecast published by the company itself on future metrics such as revenue, earnings, or margin. It can be formulated as a point value, a range, or a qualitative statement. Guidance steers capital market expectations and serves as a benchmark for later actual figures.
Why it matters for small caps
In small caps with little analyst coverage, guidance is often the most important expectation anchor. Repeated forecast cuts or a very wide range can point to low planning certainty.
Common misreadings
- Guidance is not an audited commitment but an expectation subject to uncertainty that can be adjusted at any time.
In the process
Frequently asked
In what form is guidance given?
As a specific point value, as a range, or as a qualitative statement. Narrow ranges signal higher planning certainty, wide ranges more uncertainty.
What does a forecast cut mean?
The company expects weaker figures than previously communicated. Repeated cuts can point to structural problems or overly optimistic planning.
Is guidance binding?
No. It is an expectation subject to uncertainty. Price-relevant adjustments can, however, trigger ad-hoc disclosure obligations.
Related terms
Education only, not investment advice. Ranges and thresholds are didactic orientation values, not an official standard.