WordValeprofit warning
an announcement that profits will be lower than expected
In more detail
1. (noun) an official statement by a company saying that its profits will be lower than previously expected or announced
Examples
- 1. The software company issued a profit warning after losing several major clients.
How to use profit warning
A profit warning is a formal communication issued by a company's management to shareholders and the market, typically causing the stock price to fall. It signals that expected financial performance will fall short of prior guidance and is more specific and urgent than general financial forecast updates. The term is commonly used in business news and investment contexts.
Common phrases
- issue a profit warning
- profit warning announcement
- surprise profit warning
- profit warning issued
- profit warning stock
Synonyms
profit alert · earnings warning · guidance reduction · downward revision
A common mistake
Learners sometimes confuse this with a general forecast or prediction; a profit warning specifically indicates a downward revision from previously communicated expectations, not merely a first-time forecast.
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