Under the Private Securities Litigation Reform Act of 1995, American companies have a legal “safe harbor” for forward-looking statements. A projection is protected when it is identified as such and “accompanied by meaningful cautionary statements identifying important factors” that could make the results differ.
This is why earnings calls open with a warning that the company’s plans and forecasts may not come true. Words such as “believe,” “expect,” “anticipate” and “intend” mark a statement as forward-looking.