Extraordinary Items-Income Statement

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karim1997
Posts: 1
Joined: Tue Jul 20, 2021 11:21 am

Extraordinary Items-Income Statement

Post by karim1997 »

Hi everyone,

I would like to know if it is better to include or exclude extraordinary items for EPS (earning per Share) in Stock Analysis?

I would appreciate only those with good stock investing experience & solid financial background to comment on the matter :happy

Thanks,
Karim
Amateur Investor
CPA without a cause
Posts: 18
Joined: Sun Apr 19, 2015 6:40 pm

Re: Extraordinary Items-Income Statement

Post by CPA without a cause »

CPA here specializing in financial reporting...not sure what you mean.

accounting rules changed a few years ago that made it basically impossible for something to be considered "extraordinary" on the GAAP P&L.

do you mean non-GAAP adjustments that some companies present to get to adjusted non-GAAP EPS? wall street calls this "earnings before bad stuff" because you never see adjustments making the numbers look worse.

regardless, i'm not sure what you expect to glean looking at the financials of individual companies that the big wall street big shots can't.

you should be on wallstreetbets, not bogleheads, for this type of discussion.
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retired@50
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Location: Living in the U.S.A.

Re: Extraordinary Items-Income Statement

Post by retired@50 »

Welcome to the forum. :happy

I think the following two links could be beneficial to you.

This is a similar thread: viewtopic.php?f=10&t=350007

This is a wiki page: https://www.bogleheads.org/wiki/Behavio ... ation_bias

Regards,
This is one person's opinion. Nothing more.
magneto
Posts: 1047
Joined: Sun Dec 19, 2010 10:57 am
Location: On Chesil Beach

Re: Extraordinary Items-Income Statement

Post by magneto »

karim1997 wrote: Tue Jul 20, 2021 11:26 am Hi everyone,

I would like to know if it is better to include or exclude extraordinary items for EPS (earning per Share) in Stock Analysis?
Consider both convey information.
How they are treated by the investor could depend on the nature of the exceptionals,
and the history of the company in this respect.
All info is good.
'There is a tide in the affairs of men ...', Brutus (Market Timer)
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