Poor forecasting methods drain investor confidence

Inaccurate earnings forecasts are among the easiest ways to upset investors and strain top management credibility. But new research says most companies are failing to improve forecast accuracy, often because they’re martyrs to an annual planning cycle – and the frequency and fallout from missed earnings targets could get worse as market uncertainties persist through this year.

With markets slowing unexpectedly and borrowing costs uncommonly volatile, CFOs have more reason than usual to about missing their earnings forecasts this year.

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