Hi /r/investing,
How do I convert a firm's GAAP earnings back to non-GAAP? "What does non-GAAP mean," you might rightfully ask. Well, after asking this question in a couple of other places it turns out that I'm not quite sure what I mean, but I have two examples that might help someone who knows what they're talking about parse what I'm asking. When a company reports earnings, they give GAAP earnings and non-GAAP earnings. If I get a report from a research firm on a stock, the income statement in the report doesn't perfectly match the income statement on the 10-Q of the firm the report is about. Is the general rule just removal of one-time charges? I know that there's several non-GAAP accounting methodologies, but is there one commonly that research firms consistently follow when they're writing a research report on a company? Is it completely up to a firm's discretion, meaning if I got a Goldman report, a Needham report, and a PiperJaffray report all on the same firm they could give me different numbers? Any light you guys could shed on this would be great.
Submitted July 31, 2017 at 12:34PM by Fermit http://ift.tt/2hhazR2
