Barry Diller Blasts Corporate Earnings Guidance, Calls It 'Wasteful' Exercise

Barry Diller Blasts Corporate Earnings Guidance, Calls It 'Wasteful' Exercise

The economy will "eventually" rebound but in the meantime, companies are wasting time trying to come up with quarterly or yearly guidance, Barry Diller, chairman of Expedia Group Inc EXPE and IAC/InterActiveCorp IAC, said on CNBC's "Squawk Box."

What Happened

There is little doubt the economy will rebound but the timeline is as uncertain as can be. Meanwhile, the concept of public companies trying to model their outlook to their investors is "wasteful" and the finance team should spend the time "doing some work" instead.

"Spend your time actually figuring out where you should invest your money, how you should run your company," Diller said. "And anyone who runs their company for a quarter is a bird-brain."

Why It's Important

Diller said the whole concept of guidance "is nuts" as it incentivizes companies to model ideally suited for a beat-and-raise earnings report. Also, what exactly does it say about a company beating its own internal projections it calculated three or six months ago?

"I'd love it as a practice to end for everybody," he said.

What's Next

Guidance is a "bad business" and will no longer be offered at both Expedia and IAC, Diller said. Instead, one of the two companies is considering issuing monthly reporting of some of its metrics.

This level of transparency "kind of makes sense" and might even be "healthy."

Related Links:

'Whoa': May Jobs Report Much Stronger Than Expected, Unemployment Rate Falls To 13.3%

Apple $425 Per Share Case 'On The Horizon,' Analyst Says

Posted In: Barry DillerCNBCNewsGuidanceMedia

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.