September 8, 2023
Long-term Financial Targets
By providing The Big So What™, we inform, inspire, and influence positive change
When thoughtfully utilized, long-term targets influence key decisions and help shape the trajectory for growth and stability at a company. These targets are not just numbers; they represent a commitment to shareholders, a roadmap to fulfilling the company’s vision, and a benchmark against which The Street can measure progress. They also serve as an internal motivator.
To better understand long-term financial target trends, we analyzed 100 investor days that have occurred in 2023 across market caps and sectors.
Key Findings:
- The majority, 82%, of companies that hosted investor days provided long-term financial targets
- At least 80% of companies across all market cap ranges provided long-term financial targets with small caps the highest at 86%
- Three-year (2025) and four-year (2026) are the most prevalent timeframes, at 20% and 26% respectively
- Most companies provided three long-term financial metrics
Revenue growth (78%) and operating margins (73%) are the most oft-cited metrics provided, followed by EPS growth (34%), FCF (33%)
Selected Best Practices…
- Introduce targets in a public forum that allows for management voiceover
- Do not over commit by providing too many metrics or ones that are hard to predict
- Provide achievable financial goals and communicate ranges where appropriate
- Outline baseline assumptions and scenario analyses
- In the absence of long-term targets, articulate strategy milestones
Corbin Advisors is a strategic consultancy accelerating value realization globally. We engage deeply with our clients to assess, architect, activate, and accelerate value realization, delivering research-based insights and execution excellence through a cultivated and caring team of experts with deep sector and situational experience, a best practice approach, and an outperformance mindset.
