Survey after survey has found that the clear majority of executives feel that short-term pressure is destroying value. 

WHITEPAPER Moving Beyond Quarterly Guidance: A Relic of the Past

Quarterly reporting remains essential in providing investors with the transparency they need and in keeping management teams accountable for their performance. On the other hand, consensus earnings estimates will continue to be a feature of markets regardless of what companies choose to disclose. If companies do not issue guidance, a mismatch between reported earnings and consensus indicates an inaccurate forecast rather than an earnings “miss.” This whitepaper is aimed not at reporting or consensus estimates, but at the issuance of quarterly earnings guidance alone.

Companies are moving beyond quarterly guidance by:

1. Moving away from short-term guidance, especially quarterly earnings per share guidance.

2. Providing investors with a long-term roadmap focused on the fundamental economic drivers of the business and long-term strategic goals.

3. Sharing management’s outlook for three to five KPIs tied to the company’s long-term strategic goals to frame the investment opportunity for shareholders.

You can download the whitepaper here or go to

Moving Beyond Quarterly Guidance: A Relic of the Past

About FCLTGlobal

FCLTGlobal is a not-for-profit organization that encourages a longerterm focus in business and investment decision-making by developing practical tools and approaches to encourage long-term behaviors across the investment value chain.

FCLT began in 2013 as an initiative of the Canada Pension Plan Investment Board and McKinsey & Company, which, together with BlackRock, the Dow Chemical Company and Tata Sons, founded FCLTGlobal in July 2016. In addition to our founding Members, we involve other member organizations from across the investment value chain, including asset owners, asset managers and corporations, that are committed to achieving long-term tangible actions that benefit businesses, markets and society more broadly. This document, Moving Beyond Quarterly Guidance: A Relic of the Past, benefited from the insights and advice of a global working group of corporate investor-relations experts and institutional investor staff of FCLTGlobal’s Founders and Members. We are grateful for all the input we have received, but the final document is our own, and the views expressed do not necessarily represent the views of FCLTGlobal’s Founders and Members.