VOA慢速英语20060421b

ECONOMICS REPORT - Some Companies Stop Telling What They Expect to EarnBy Mario Ritter

Broadcast: Friday, April 21, 2006

I'm Steve Ember with the VOA Special English Economics Report.

Many companies provide earnings¹ guidance. They tell their shareholders² how much they expect to earn in the future. Often companies report expected earnings for each three-month period.


nyse

Earnings are usually measured in terms of earnings-per-share. That is, the amount of earnings divided by the number of shares in a company. Companies usually have millions, even thousands of millions, of shares. So even earnings-per-share of one cent can add up to a lot of money.

But not everyone supports the idea of earnings guidance. First of all, some say the pressure to report earnings growth can lead to dishonest reporting. One example they point to is the case of the failed energy-trading company Enron.

Its two former leaders, Kenneth Lay and Jeffrey Skilling, are currently on trial in Houston, Texas. They are charged with letting company officers make false business deals to give the appearance of earnings growth. They deny any wrongdoing.

Companies are under pressure to report growth. It can increase the price of their shares. Stock prices largely show how much investors⁴ are willing to pay for growth over time. But another reason many experts dismiss quarterly earnings guidance is that companies are often wrong.

In fact, most official statements from companies include a warning that it might be a forward-looking statement. In other words, a statement about the future. It means the company should not be held responsible if the statement is wrong because something unexpected happens.

At the end of two thousand two, the Coca-Cola Company announced a decision to stop giving quarterly or even yearly earnings guidance. The investor³ Warren Buffet⁵ is believed to have influenced that decision. Since then, a number of large companies have moved away at least from quarterly guidance. They include AT&T, McDonald's, Ford⁶ and Motorola.

Some experts see no reason to stop. They say the pressure for growth will remain because stock market analysts⁷ will continue to estimate earnings for large companies. They say investors would have less information about smaller ones.

Critics say earnings guidance supports short-term business thinking. But others say ending it could give the appearance that a company is trying to hide bad news.

This VOA Special English Economics Report was written by Mario Ritter. Read and listen to our reports at www.unsv.com. I'm Steve Ember.

1 earnings   

n.工资收人；利润，利益，所得

参考例句：

• That old man lives on the earnings of his daughter.那个老人靠他女儿的收入维持生活。
• Last year there was a 20% decrease in his earnings.去年他的收入减少了20%。

2 shareholders   

n.股东( shareholder的名词复数 )

参考例句：

• The meeting was attended by 90% of shareholders. 90%的股东出席了会议。
• the company's fiduciary duty to its shareholders 公司对股东负有的受托责任

3 investor   

n.投资者，投资人

参考例句：

• My nephew is a cautious investor.我侄子是个小心谨慎的投资者。
• The investor believes that his investment will pay off handsomely soon.这个投资者相信他的投资不久会有相当大的收益。

4 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

5 buffet   

n.自助餐；饮食柜台；餐台

参考例句：

• Are you having a sit-down meal or a buffet at the wedding?你想在婚礼中摆桌宴还是搞自助餐？
• Could you tell me what specialties you have for the buffet?你能告诉我你们的自助餐有什么特色菜吗？

6 Ford   

n.浅滩，水浅可涉处；v.涉水，涉过

参考例句：

• They were guarding the bridge,so we forded the river.他们驻守在那座桥上，所以我们只能涉水过河。
• If you decide to ford a stream,be extremely careful.如果已决定要涉过小溪，必须极度小心。

7 analysts   

分析家，化验员( analyst的名词复数 )

参考例句：

• City analysts forecast huge profits this year. 伦敦金融分析家预测今年的利润非常丰厚。
• I was impressed by the high calibre of the researchers and analysts. 研究人员和分析人员的高素质给我留下了深刻印象。