Guidance Practices & Trends
FTSE 100
Research Report by
EventVestor & IR Society
October 2012
FTSE 100 Guidance Practices and Trends - Highlights
•
Less than 10% of FTSE 100 companies provide quantitative EPS
guidance .
– However, over 40% of the companies provide guidance on operational metrics other
than revenue profit and EPS
than revenue, profit, and EPS.
•
Overall, 65% of the FTSE 100 companies provide some narrative
directional guidance on EPS, revenue, profit, or other operational metrics.
•
Among the companies that provide guidance, about 85% provide only
annual or long term guidance ranging from 2 to 4 years.
•
Among the companies that provide guidance, about 40% have guided
higher compared to about 12% of the companies that guided lower, since
J
2011
January 2011.
This report is based on the analysis of FTSE 100 companies guidance practices by EventVestor, the most
comprehensive event-driven investment research and business analysis platform. The study includes all guidance
announcements by FTSE 100 companies in 2011 and 2012 YTD to the end of September. Guidance announcements
y
p
p
were sourced from company press releases and other reports.
FTSE 100 Guidance Practices and Trends – Guidance Frequency
86% 80% 90% 100%FTSE
100
Number
of
Companies
Providing
Guidance
234
171 200
250
FTSE
100
Number
of
Companies
Providing
Guidance
8% 6% 0% 10% 20% 30% 40% 50% 60% 70% 65 58 0 50 100 150
• 65% of the FTSE 100 companies have announced guidance about 234 times in 2011
0%
6 Months Guidance 3 Months Guidance Annual Guidance
EventVestor
0
#Companies #Guidance Events 2011 2012 YTD EventVestor
65% of the FTSE 100 companies have announced guidance about 234 times in 2011.
• 58% of the FTSE 100 companies have announced guidance about 171 times in 2012, to September.
• Time horizon of over 85% of the guidance announcements was annual compared to 8% of the guidance
t f
6
th
d 5% f th
t f
3
th
i d
announcements for 6 months and 5% of the announcements for 3 months period.
• About 7% of the guidance announcements were long term ranging from 2 to 4 years.
FTSE 100 Guidance Practices and Trends – Guidance Type
46% 33% 43% 37% 40% 50%FTSE
100
Percent
of
Companies
Providing
Guidance
by
Type
12% 9% 14% 5% 0% 10% 20% 30%
• 45% of the companies that provide guidance have guided higher in 2011 compared to about 12% of the
Higher Lower Mixed Reaffirms
2011 2012 YTD EventVestor
companies that have guided lower.
• 43% of the companies that provide guidance have guided higher in 2012 to September compared to about
14% of the companies that have guided lower during the same period.
• 33% of the companies have reaffirmed their earlier guidance in 2011 compared to about 37% of the
companies that have reaffirmed their guidance in 2012 to September.
• 9% of the companies in 2011 and 5% of the companies in 2012 have announced mixed (some metrics
higher and some lower) guidance.
FTSE 100 Guidance Practices and Trends – Guidance Content
34% 30% 35% 40%FTSE
100
Percent
of
Companies
by
Guidance
Content
43% 40%
45% 50%
FTSE
100
Percet
of
Companies
Providing
Quantitative
Guidance
25% 17% 5% 10% 15% 20% 25% 30% 15% 6% 9% 10% 15% 20% 25% 30% 35% 40%
• Most companies provide directional and long term guidance and usually guide on operational metrics like CapEx and
0% 5%
Revenue Guidance Profit Guidance EPS Guidance
EventVestor
0% 5%
Revenue Range Profit Range EPS Range Other Metrics
EventVestor
Most companies provide directional and long term guidance and usually guide on operational metrics like CapEx and
margins.
• About 15% of the companies provide quantitative revenue range guidance while another 19% of the companies
provide directional or qualitative revenue guidance.
• About 6% of the companies provide quantitative profit range guidance while another 19% of the companies provide
directional or qualitative profit guidance.
• Among the companies that provide guidance, only about 17% of the companies provide EPS related guidance (9%
of the companies provide quantitative EPS range guidance while the remaining 8% provide directional or qualitative
of the companies provide quantitative EPS range guidance while the remaining 8% provide directional or qualitative
EPS guidance.
EventVestor’s Powerful Data and Analytics Help IR Professionals Gain Valuable,
Timely Insight into Key Issues Driving Valuation & Trading Activity
Use of
Executive
P
d
I d
Guidance
Use of
Capital
Executive
Change
Product
Development
Index
Changes
Detailed 5-year history of
guidance trends covering 60K+ announcements by US UK and Canadian
Granular detail on stock
buybacks, dividends and M&A activities
Better synthesize how
Capture investment
community reaction to senior management and Board appointments and
Track trading trends from
product development to commercialization
From new product launches to
Understand historical
trading volume and price trends in advance of annual or periodic US, UK and Canadian
companies
Analyze specific peers,
industries or cross-industry
Discover trends and
anticipate market reaction related to changes in guidance
Better synthesize how
peers allocate capital
Anticipate market reaction
to changes in dividend policy or buyback activity
Insight into key M&A
milestones that will drive trading activity
Board appointments and departures
Qualitative attributes
highlight rationale for executive changes – from succession planning and restructuring-driven change to acrimonious
From new product launches to
bio-pharma clinical trial milestones including regulatory approvals
Gain insight into IP milestones
that drive valuation
Commercialization milestones
include new customer wins and
annual or periodic
rebalancing of major equity indices
For more details, please contact us at:
IntelliBusiness, Inc.
guidance trading activity
change to acrimonious board disputes
include new customer wins and contracts
EventVestor IR Solutions Coverage:
Web-based analytic platform covering 80+ event types and 4,000+ companies
Custom event studies analyzing specific
100 Overlook Center, 2nd Floor
Princeton, NJ 08540
Phone: 609-945-4973
email: anju@intellibusiness.com
www.EventVestor.com
Custom event studies analyzing specific peers and industries
Interactive charts for board-level presentations
Event library as a reference tool for drafting event announcements
Event-driven email alerts