Earning Guidance? Pro & Contra

The figures speak for themselves: According to a Q4 report, more and more listed companies are publishing an annual earning guidance. According to this report, the number of companies issuing such earnings forecasts increased sixfold between 1995 and 2007. The number of companies that issue quarterly earning guidance has even increased sevenfold. What are the advantages and disadvantages for a company to make such earnings forecasts?

Here is the whole story.