Why don't the earnings (EPS) in the tool or stock data service match other sources?

Suzi
2015-09-08 13:03

The earnings (EPS) that are used in the tools and stock data service are 'Diluted EPS from Continuing Operations'.

There are the earnings from the GAAP definition of continuing operations divided by the common shares outstanding adjusted for the assumed conversion of all potentially dilutive securities. Securities having a dilutive effect may include convertible debentures, warrants, options, and convertible preferred stock.

These earnings are traceable back to the company's official filing (10-Q, 10-K, 20-F) on the SEC website at http://www.sec.gov

Other financial resources may present different variations on earnings.

In particular, Value Line will present the company's adjusted, 'pro-forma', or Non-GAAP earnings from their press release. Value Line no longer notes adjustments to recent data in their footnotes so the end user is often unaware that adjusted data is being presented. 

If the company presents adjusted or Non-GAAP data in their press release then they have an obligation to inform you that the data has been adjusted and how it has been adjusted from the GAAP numbers. This information is in the form of 'reconciliation' and is present whenever the company reports non-GAAP numbers. This is usually in their earnings press release which is also recorded with the SEC under an '8-K' filing.

 

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