Just months after Jamie Dimon and Warren Buffett issued a call for an end to quarterly earnings guidance, companies may be heeding the call.
With third-quarter earnings season less than three weeks away, fewer companies than normal are issuing pre-announcements than the norm.
Thus far, 98 members of the S&P 500 have issued guidance, a decline from the average 112 and below the typical 107 for any given quarter, according to FactSet. While the drop-off isn't precipitous, it is the lowest level in 3½ years.
Back in June, Dimon, CEO of J.P. Morgan Chase, and Buffett, legendary head of Berkshire Hathaway, called for an end to the pre-announcements as a way to halt short-term thinking in corporate America. They reasoned that companies spend too much time trying to make their quarterly numbers and an "unhealthy focus on short-term profits at the expense of long-term strategy, growth and sustainability," as they said in a Wall Street Journal op-ed and later in a joint CNBC appearance.
"Companies frequently hold back on technology spending, hiring, and research and development to meet quarterly earnings forecasts that may be affected by factors outside the company's control, such as commodity-price fluctuations, stock-market volatility and even the weather," they wrote on June 6.