Why Do Some Analysts Go Rogue?
Senior management teams are very thoughtful about the financial guidance they provide the Street. Internal and external factors are considered and result in ranges that reflect the management team’s best estimates at the time they are provided. Given the amount of brainpower that goes into crafting the guidance, management teams often become frustrated when their analysts go “rogue” by publishing estimates outside of the guidance range. As a former analyst, I can tell you this happens for a variety of reasons.
Tags: analysts, consensus estimate
