On platforms like Dividend Data, you can find key financial metrics such as metrics Quarterly EPS (Earnings Per Share). based on Non-GAAP (Generally Accepted Accounting Principles) figures.
What is Quarterly EPS (NON-GAAP)?
Quarterly EPS (NON-GAAP) is a measure of a company's profitability reported on a per-share basis, calculated for a specific quarter, and excludes certain items as per non-GAAP standards.
NON-GAAP Adjustments:
Non-GAAP adjustments may exclude items such as:
One-time expenses or revenues.
Non-cash expenses like stock-based compensation.
Acquisition-related costs.
Restructuring costs.
Why is Quarterly EPS (NON-GAAP) Important?
Clearer Earnings Picture: It provides an alternative view of a company’s performance by excluding certain non-recurring or irregular items.
Investment Decisions: Investors use NON-GAAP EPS to assess a company's operational efficiency and to make comparisons with industry peers.
Company Performance Analysis: It offers insights into the core operating results of a company, which can be more indicative of future performance.
GAAP vs NON-GAAP EPS:
GAAP EPS includes all items required by GAAP and is often considered a more standardized and regulated measure.
NON-GAAP EPS allows for more flexibility in presentation but can vary significantly from company to company.
Limitations of NON-GAAP EPS:
Lack of Standardization: The adjustments made in NON-GAAP calculations can differ widely between companies.
Potential for Misleading Information: Companies might exclude items to present a more favorable earnings picture.