What does ‘Sandbag’ mean

Sandbag is a tactic used to hide or limit expectations of a company’s or individual’s strength in order to produce greater than anticipated results. Sandbagging, in business, is most often seen when company managers temper the expectations of superiors or shareholders by giving guidance below what they know will be achieved. Once the better than expected results are presented, the firm looks all the better.

Explaining ‘Sandbag’

Let’s imagine for example that Orange Inc had gained a reputation in the late 2000s for sandbagging quarterly expectations leading up to earnings season. Analysts and pundits alike would be confident that quarterly numbers would be strong. However, when results were released they would be markedly higher than most expected, thus leading to a surge in share value, which may be a more favorable outcome in terms of press coverage.

Further Reading

  • Vegetated ridge and sandbag may not reduce soil erosion and loss of carbon and nutrients from upland fields – [PDF]
  • The construction of sandbag microstructure in polyamide 6/ethylene-propylene-diene terpolymer/nanometer calcium carbonate ternary composite – [PDF]
  • The ability of CNS vital signs to detect coached sandbagging performance during concussion baseline testing: a randomized control trial – [PDF]
  • Invalid Baseline Testing with ImPACT: Does Sandbagging Occur with High School Athletes? – [PDF]
  • Powered by the state or finance? The organization of China's carbon markets – [PDF]
  • Bandwagon and sandbagging effects: Some measures of dissonance reduction – [PDF]
  • Challenges to the development of carbon markets in China – [PDF]
  • The Construction of Sandbag Microstructure in Polyamide 6/Ethylene–Propylene–Diene Terpolymer/Nanometer Calcium Carbonate Ternary Composite – [PDF]
  • Sandbagging and the Distinction between Warranty Clauses and Contractual Indemnities – [PDF]