Kicking the Guidance Habit

Some CFOs don't have to deal with investors who are used to quarterly guidance. Jack Sennott, senior vice president and CFO of Darwin Professional Underwriters, never began the practice. Darwin is only four years old and went public just last year. "We really want investors to look at the merits of how we're doing as a company and not where we are versus expectations," he told CFO.com.

For CFOs who want to eliminate quarterly EPS guidance, but are not as fortunate as Sennott, he recommends making a "clean break" with investors by being up front with them. "Use an investor conference call to explain to them and analysts that [quarterly earnings guidance] has encouraged you to focus on the wrong areas," suggests Sennott.

• « previous
• 1
• 2