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Company misses revenue expectations or revenue expectation misses reality? Hmm...
by NumberCruncher 10y ago
Company misses revenue expectations or revenue expectation misses reality? Hmm...
- jkestner 10y agoFor better or worse, it's partially on the company to manage expectations. Amazon does a great job of this, which is why it can get away with minimal profit most quarters.
- NumberCruncher 10y agoHave you ever googled "amazon offshore profits"? Maybe you should...
- totalZero 10y agoAgreed. Managing expectations into earnings is a large part of a CFO, treasurer, or other investor relations officer's job. I do admit that it's necessarily hard for GoPro to do this, because they're a high-tech, discretionary consumer product -- the competitor landscape is always shifting and advancing, and a ton of factors affect consumer spending choices. GoPro is not a networking company with ten big and slow-moving clients. Something as simple as gas price hikes (less discretionary budget), or a new wearable product released by a different company (drains from "cool new toy" budget), could affect their sales. Stocks like GPRO, FIT, etc are really hard to analyze, for these reasons and others. Then again, I guess you could say that makes the task of managing expectations all the more important.
- r00fus 10y agoNice point. Companies don't miss Wall St. expectations. Expectations miss on companies' guidance. (now if they didn't hit their own numbers that'd be a fail).