Strong guidance and corporate enthusiasm
What is more important in some cases is what the company says about the future. How many times does a company beat earnings estimates only to then disappoint when it comes to guidance? It happens far too often and when it does happen a stock usually suffers big time.
It’s been some time since guidance blew away investors. If the economy is as strong as the Federal Reserve seems to think it is, guidance should be quite good this quarter.
On the flip side, some companies will use the earnings reporting season to dampen enthusiasms that may have run amok. In some ways, that is a manipulation that sets the stage for earnings beats down the road.
This quarter I just want to see corporate enthusiasms run amok and guidance be strong.