Case | HBS Case Collection | 2011 (Revised from original 2010 version)

Google and Earnings Guidance

Abstract

The case explores Google's communication strategy with Wall Street analysts. In particular, the case focuses on Google's commitment to a no-guidance policy and provides an overview of guidance practice among major U.S. companies.

Keywords: Business Earnings; Communication Strategy; Capital Markets; Corporate Disclosure; Corporate Governance; Business and Shareholder Relations; United States;

Format: Print

24 pages

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Citation:

Brochet, Francois, and David Kiron. "Google and Earnings Guidance." Harvard Business School Case 111-026, April 2011. (Revised from original November 2010 version.)

In early 2012, Investindustrial, a European private equity group, publicly announced their intention to sell their 76.7% stake in Ducati Motor Holding S.p.A., an iconic Italian producer of sport performance motorcycles. The decision followed a six-year turnaround during which Ducati returned to profitability and significantly expanded its product line. Investindustrial's team had the following exit alternatives: 1) a trade sale to an automotive buyer; 2) a secondary buyout, partial or complete, by a financial investor; 3) a relisting in Hong Kong. Each option had its pros and cons, but all required a careful valuation of Ducati to maximize the investors' return on their flagship investment.

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Google and Earnings Guidance

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