There are Earnings and There are Earnings
| HelpRegister |
There are Earnings and There are Earnings This is a good article by Jeff Matthews about something it is important that all of you have an awareness of. If you are making projections of future stock price based on earnings growth, make sure you understand what earnings number you are using to make projections. The article uses a recent Target (NYSE:TGT) earnings report as an example. If your investment club owns shares, you will probably be especially interested in what he has to say.Lots of numbers fly around in earnings reports. GAAP numbers are developed using accounting rules. Non-GAAP or "Adjusted" earnings numbers are developed using whatever information the company wants you to see. GAAP numbers are always in an earnings report somewhere, but they are often played down because the "Adjusted" numbers are more attractive. What is Your Definition of Earnings? Laurie Frederiksen
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