Gene,>>>Managements guidance typically takes the form of confirmation or denial of the estimates. <<<
When properly applied, guidance is like a teacher is to a student. A good teacher lets the student think he got it all by himself.
>>>I don't remember Intel telling us ahead of time that 1997 would come in at $3.88.<<<
No one can really see into the future, just as no one saw the Internet come on the way it did, that and the enornous success of Windows 95, causing far above normal growth in 1995/1996. Because of that, most people just projected that growth in a straight line fashion for 1997 - but then again - out of left field came the Asian economic debacle, the sub 1k phenom, and Eckhard Pfeifer shooting himself and the industry in the foot with his greedy channel stuffing in the 4th quarter. All this, while Intel was going through a normal product transition.
As for Intel, Andy Grove didn't make if by being a good buddy to analysts. He'd as soon stick a finger in their chest as to giving them a slap on the back.
Craig Barrett, on the other hand, is not exactly a back slapper, but not poking his finger into someone's chest is a huge change in Corporate culture - as far as Intel is concerned.
Everything else being the same, that little change in Corporate culture could mean quite a bit to Intel and analyst relationship.
Mary
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