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USA Today (November 29)

2012/ 11/ 30 by jd in Global News

As the U.S. approaches the fiscal cliff “an alarming number of people…are declaring that going over the cliff wouldn’t be so bad after all.” It would. Congress needs to reach a deal to avoid the fiscal cliff. “While spending cuts and tax hikes are needed to rein in federal deficits, having them kick in all at once would be like a drug overdose that plunges the economy into a new recession, according to the Congressional Budget Office and independent economists.”

 

CFO.COM (November Issue)

2012/ 11/ 30 by jd in Global News

“Is providing quarterly earnings guidance worth the effort?” Increasingly U.S. companies are saying no. Quarterly guidance is criticized for “consuming an inordinate amount of time, rarely hitting the bull’s-eye, and unnecessarily shifting company’s focus to short-term tactics at the expense of long-term value.” While quarterly guidance still remains common, more companies are moving toward “annual guidance with quarterly updates.” According to the National Investors Relations Institute, the percentage of companies providing quarterly guidance has fallen from 86% to 76% since 2009. A McKinsey & Co. study analyzed 4,000 public companies, finding that “quarterly earnings guidance does not result in superior valuation.” Many companies who want to discontinue the practice, however, may hesitate out of fear analysts might assume they were trying to hide something.

 

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