Benjamin -
(My point is that if the analysts have calculated revs wrong, the eps impact would be dramatic. Wind's mgmt doesn't have to predict anything, nor refute what analysts are estimating.)
Wind's management doesn't HAVE to do anything. However, over the long term, the best interests of shareholders are generally served by the dissemination of accurate information in a timely manner, and not by a series of positive and negative surprises. The market gives a valuation reward to predictability and transparency.
Even if Wind could report 22 cents per share, it is unlikely to do so unless it is certain to achieve substantially higher sequential earnings in the following quarters. All companies manage their revenue recognition and earnings to one degree or another, and software companies have more freedom than most in that regard.
Saying that analysts 'calculate' revenues and/or earnings may be technically correct, but it tends to be misleading. All analysts can do is extrapolate trends from prior results, integrate bits of acquired business intelligence, and finally, talk to management. If, for whatever reason, management is not able to offer credible analyst guidance, then the analysts' estimates are of little factual value, although they may well affect the short and intermediate term price of the stock.
Regards, Don |
