Guidance Process Explained

Learn how company guidance works and how to use the Guidance API for forward-looking financial analysis

Overview

• What company guidance represents
• Difference between guidance vs. analyst estimates
• Why guidance matters for forward-looking analysis
• Data source: company management disclosures

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What Company Guidance Represents

Company guidance represents forward-looking financial expectations issued directly by a company’s management. It typically includes projected ranges or estimates for key performance metrics such as earnings per share (EPS) and revenue for a specific fiscal period. Guidance reflects management’s internal forecasts, assumptions, and strategic outlook at the time it is issued.

Unlike historical financial results, guidance is prospective and subject to change based on market conditions, business performance, and external factors.

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Difference Between Guidance vs. Analyst Estimates

Aspect	Company Guidance	Analyst Estimates
Source	Company management	Independent financial analysts
Basis	Internal forecasts and operational insight	External research models and assumptions
Perspective	Management’s expected performance	Market consensus expectations
Update Frequency	Issued periodically or when outlook changes	Updated continuously
Intent	Communicate outlook and set expectations	Evaluate and forecast company performance

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Why Guidance Matters for Forward-Looking Analysis

Guidance is a critical input for forward-looking analysis because it:

• Anchors market expectations to management’s outlook
• Signals confidence or caution about future performance
• Provides context for interpreting earnings results
• Helps assess directional changes such as raised, lowered, or reaffirmed outlooks

Investors and analysts often compare guidance against prior guidance and analyst expectations to evaluate momentum, execution risk, and strategic direction.

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Data Source: Company Management Disclosures

Guidance data is sourced directly from official company communications, including:

• Earnings calls
• Earnings press releases
• Investor presentations
• Regulatory filings

All guidance reflects information explicitly disclosed by company management and is structured to preserve the original ranges, estimates, and timing provided at the time of announcement.

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Guidance API – Developer Guide

Overview

The Guidance API provides structured company-issued forward-looking guidance, including EPS and revenue projections. Guidance reflects management’s expectations for a specific fiscal period and is critical for forward-looking analysis, comparison, and event-driven workflows.

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Guidance Metrics

EPS Guidance

Each guidance record may include:

Field	Description
eps_guidance_min	Minimum EPS projection
eps_guidance_max	Maximum EPS projection
eps_guidance_est	Estimates midpoint EPS
eps_type	Accounting basis (GAAP or Adjusted)

Revenue Guidance

Each guidance record may include:

Field	Description
revenue_guidance_min	Minimum revenue projection
revenue_guidance_max	Maximum revenue projection
revenue_guidance_est	Estimates midpoint revenue
revenue_type	Accounting basis (GAAP or Adjusted)

Prior vs Current Guidance

Field	Description
eps_guidance_prior_min	Prior minimum EPS projection
eps_guidance_prior_max	Prior maximum EPS projection
revenue_guidance_prior_min	Prior minimum revenue projection
revenue_guidance_prior_max	Prior maximum revenue projection

Compare current guidance with prior projections to see if management has raised, lowered, or reaffirmed expectations.

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Timing and Period

Field	Description
period	Fiscal scope (e.g., Q1, FY)
period_year	Fiscal year
date and time	Announcement date and time
updated	Last update timestamp (Unix UTC)
prelim	Preliminary indicator

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Record Classification

Primary Guidance

Field	Description
is_primary	Y/N – Marks the default record when multiple guidance entries exist for the same company/date

Adjusted guidance is prioritized over GAAP for primary selection.

Confirmation Status

Field	Description
confirmed	Y/N – Y indicates official company guidance; N indicates expected (unconfirmed) guidance

Confirmed guidance (Y) represents official company disclosure.

Unconfirmed guidance (N) is automatically created for upcoming earnings, updated daily, and may include:

• Expected announcement timing
• Predicted metrics
• Primary/secondary classification

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Security Identification

Each record is associated with:

Field	Description
ticker	Stock symbol
name	Company name
cusip	CUSIP identifier
exchange	Exchange where the security trades

This ensures accurate mapping of guidance to the correct company and security.

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Display & Interpretation Guidelines

• Use primary guidance (is_primary = Y) for default views
• Display full ranges when available; fallback to estimates when necessary
• Confirmed guidance represents official disclosure; unconfirmed guidance is indicative only
• Guidance should be interpreted alongside analyst estimates and historical performance

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Error Handling

Scenario	Behavior
No data returned	Empty guidance array
Missing min/max values	Estimate-only guidance
Multiple records without a primary flag	Resolve using is_primary

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Frequently Asked Questions

What is unconfirmed guidance?

Expected guidance before official company disclosure. It is updated daily and may change.

Expected Guidance Records deliver several key advantages:

• Automatically populate as soon as upcoming earnings dates are confirmed
• Identify the expected date and time of the guidance announcement
• Predict the type of guidance (EPS or revenue), including GAAP versus adjusted metrics
• Distinguish between primary and secondary guidance within a fiscal period
• Include continuously updated estimates, refreshed daily until the official guidance announcement

Which record should I use by default?

The record with is_primary = Y.

Why are there multiple guidance records for the same date?

Companies may issue GAAP and adjusted guidance, or guidance for multiple metrics.

Can guidance be revised after confirmation?

Yes, companies may update or withdraw guidance in later announcements.

Why might guidance be missing for some companies?

Not all companies provide formal guidance.

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Related APIs

Earnings Calendar API

Track upcoming earnings events

Guidance Calendar API

Get company guidance data

Analyst Ratings API

Compare guidance to analyst expectations

Fundamentals API

Validate guidance against historical performance