well it is it, because only someone who doesn't trade doesn't know that earnings and profits are different. There has not been a surge in earnings, the profit surge is mostly cost cutting and accounting. typical, you lefties are too stupid to know you are stupid
During the reporting of the last quarterly earnings for companies, how many companies issued earnings warnings? How many companies were downgraded by analysts? That should be an easy enough question to answer...
Do you actually realize just how stupid you really are? Try not to use words that you do not understand. Here's a hint: earnings (or profits) are revenues minus expenses. Earnings can increase as a result of increased revenues, reduced expenses, or a combination of both. Expenses can be categorized as direct or indirect, variable or fixed, and even as recurring or non-recurring. And as delightful as this recap has been, it has nothing to do with the outstanding matter of extraordinary (non-recurring) items, which phenomena deems to be "new" accounting. So, once again, be a good sport and get back under your rock. It's nice and dark there.
My head hurts every time I read your mindless drivel. I don't read every single post of yours, that would be very tiresome. "Excluding items can often refer to items left out of the calculation of some earnings per share numbers. Such items may include one-time items, extraordinary expenses or income. " Can you imagine how companies might use the financial crisis to manipulate their earnings data??? e.g.:"Oh, well these expenses were "extraordinary" so they will go in the ex items category". Did you notice how this last year an unprecedented number of companies reported "ex items" numbers? Well, on second thought you don't actively trade or you would have known this already (not being pejorative, just telling the truth). So, I'll just tell you. This last year, companies reported earning almost exclusively "ex items", that hasn't been the case in years past, when aboslute earnings were the standard. Now they recently magically all switched to ex items. Why do you think that is? Because the absolute numbers were better? LOL!! I think not. With me so far? So if companies are now exploiting the "ex items" reporting you can see how this can be used to fudge the bottom line, right? So the averages are compiled from the bottom lines of the companies, so you can then see how this affects the averages... Hope that isn't too complicated for you.
yes I do know my limitations, unlike you. The failure of revenue growth to materialize on schedule has been a theme lately of many market watchers, try and read a few. Earnings is sometimes equated to revenue by some I have read, other it is not. To clarify, using your definition, you can't use exploding earnings alone to conclude the economy is good, both must rise.
Thanks for the edifying lecture. However, my original question to you was, and continues to be: how is accounting for extraordinary, non-recurring items a "new" method of reporting. Those were your words: My understanding, based on several accounting courses, a couple of business degrees and a prior career in corporate banking, is that accounting for extraordinary, non-recurring items has always been a Generally Accepted Accounting Principle. So please explain to me the "new" part. That was my question.
No, your comprehension shortcomings are plaguing you again. I never said that ex items was a "new method" of reporting. Rather the way it's being used is new, and far more widespread. Glad you have starting asking financial questions to people who actually trade now. See there, you're learning... Better late than never, eh?
Explain to me the new way that it is now being used as compared to the way that it had previously been used. My entire focus was, and continues to be, on the "new" part to which you continue to refer.