Ford Axes Quarterly and Annual Guidance

Investors will likely view Ford’s decision today to refrain from offering future financial guidance as a negative. After all, it could very well indicate that the company either has no idea how their financials will look, or that they have little confidence in meeting the objectives they will set.

Even if true, companies should join Ford and realize that it’s too difficult and unproductive to accurately predict future profits, especially if you are managing a business for long-term success, not to simply meet investors’ short-term goals.

Wall Street might not like it, but now Ford could be better able to make the right decisions to get back on track. This is not an endorsement of the stock, as I have not looked closely at it, just a pat on the back for getting rid of guidance that benefits nobody except the research analysts who rely on it to do the bulk of their jobs.