It’s been a mixed bag in the stock market lately — several companies are delighting investors by beating analysts’ expectations in the first three months of the year. But on the other hand, companies are making shareholders nervous by withdrawing guidance for the next quarter or the rest of the year.
It’s a sign of market uncertainty — tariff policies that whipsaw back and forth, uncertainties about oil supply, and the status of the Iran war are making companies nervous. Amid that backdrop, it’s difficult to guess what expenses companies will incur or the appetite for consumer spending for the next several months.
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“Some percentage of companies — more than normal — will just be saying (they) don’t have the visibility to provide discrete guidance for the quarter,” David Lefkowitz, head of US Equities at UBS Global Wealth Management, told Morningstar. “There are too many variables, I think, to really game it out.”
The stock market, in general, indeed hates uncertainty, and we’re seeing that play out across earnings reports across a variety of industries. Constellation Brands (NYSE: STZ) posted an earnings beat for its fiscal fourth quarter of 2026 (ending Feb. 28) of $1.90 per share, beating estimates of $1.71. But the beverage alcohol company withdrew its fiscal 2027 guidance, citing the economy and its impact on consumer spending.
Apparel company Steve Madden (NASDAQ: SHOO) beat analysts’ estimates by a penny per share in the fourth quarter of 2025, but in February, it announced it was withdrawing its 2026 guidance due to uncertainties from U.S. tariffs.
BRP (NASDAQ: DOO), a Canadian manufacturer of powersports vehicles and marine products, posted earnings of $2.23 per share, beating analysts’ expectations for $2.03 per share in the fiscal fourth quarter of 2026 (ending Jan. 31). But the company withdrew its guidance as well, citing $500 million in tariff expenses.
At least 21 companies have withdrawn or cut their guidance since the beginning of the Iran war, according to Reuters, with companies citing disruptions to supply chains and higher fuel prices.
Pulled guidance creates a challenging investment environment. For long-term investors, I’m in favor of riding the wave even when it gets a little bumpy. Companies are withholding guidance because they don’t have a clear idea of the next few months, but the market historically averages 10% gains per year over the long term — and that’s where you should be focused.
