Part 4/8:
For value-focused analysts like Gross, understanding where a company might stand in terms of cash flow and profit a year down the line is critical. He argues that quarterly guidance can be convoluted and often revised, preferring a longer-term perspective that allows for more reliable predictions.
Analyst Perspectives on Quarterly Guidance
The sentiment towards quarterly guidance is amplified by Jason Moser, who shared that he, too, would prefer to see companies move away from offering such granular forecasts. He believes in prioritizing management's commitments over speculative Wall Street estimates, especially in companies with long-term strategic plans that may not align with quarterly pressures.