It’s been a part of every business quarter: company executives report how much money their firm made over the last three months and then tell investors what the firm expects to do over the next three months and fiscal year. Indeed, firms did just that in January and February, during their last earnings calls.
But now, companies are telling investors to disregard all that. Company executives have said they can’t guide investors on revenues or profits, not only for the coming quarter but for the foreseeable future. Several airlines, hotels, and other travel-related companies made such announcements last week, and on Monday a major electronics retailer and a semiconductor company joined in. Experts predict that the practice of “withdrawing guidance,” will only increase over the coming weeks as companies begin the traditional first-quarter earnings report period. ...