Tag: Non-GAAP

Non-GAAP Earnings Are About To Plunge The Most Since 2009; As For GAAP Don’ Even Ask…

Tyler Durden's picture

Submitted by Tyler Durden on 03/07/2016 09:15 -0500

Now that Q4 EPS is almost in the history books with 494 S&P500 companies reporting, we can look at the numbers: blended 4Q EPS is $29.49 (-2.9% y/y) with GAAP EPS of $19.92. As DB admits, a 67% GAAP-to-non GAAP ratio is well below the normal ~90% ex. recessions, exacerbated by asset impairments and restructuring costs especially at Energy.

This is how DB shows this almost unprecedented divergence between GAAP and non-GAAP “earnings”:

 

This is merely a recreation of charts we first showed one week ago, when we commented on the widest spread between GAAP and non-GAAP since the financial crisis:

 

The chart below shows where the GAAP to non-GAAP divergence is most acute.

 

Ok, we get it: on a GAAP basis it is not a recession any more, it is a depression, just as that Houston CEO letter explained.

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FACEBOOK FRAUD

The proof that mainstream media outlets like Marketwatch, Bloomberg and CNBC are nothing but mouthpieces for the corporate fascist states of America is the blaring headlines about the tremendous profit growth just reported by Facebook. 

Here’s the deal. There is no such thing as Non-GAAP earnings. That is a made up number. Corporations in America are required to use GAAP to record their books.

The idiots in the mainstream media are dutifully regurgitating the FALSITY that Facebook earnings went up 48% over last year.

The TRUTH is that Facebook earnings went up 0% over last year.

Just a slight variance.

Keep waiting for anyone beside Zero Hedge to report this inconvenient fact. Jim Cramer says buy, buy, buy.

The Most Ridiculous Charts From Facebook’s Quarterly Earnings

Tyler Durden's picture

Submitted by Tyler Durden on 01/28/2015 16:30 -0500

Facebook may still be able to fool most people most of the time, with gullible investors ready to believe that there were 1.393 billion monthly active addicts who just have to tell the world how their day went, of which 208 million were in the US and Canada, which is more than every single working-age American and Canadian, but where the magic of Facebook’s just reported earnings of $0.54 can truly be appreciated, is in the absolutely magical breakdown between GAAP and non-GAAP for the net income microblogging service.

The punchline: Facebook reported $1,133 billion in GAAP earnings: exactly the same as a year ago. What happened to non-GAAP income from operations during the same period? It rose from $1.5 billion to $2.2 billion. Again: this is in a period in which GAAP income remained unchanged!

As for real, GAAP EPS, it was… drumroll… $0.25, or less than half of the mark-to-unicorn number that only FB shareholders, if not advertisers, can love.

Continue reading “FACEBOOK FRAUD”

WHEN IN DOUBT, LIE

The precedent was set in March of 2009 when Bernanke and Geithner threatened the wimpy accountants at the FASB and forced them to waive the mark to market accounting rules, so the Too Big To Trust Wall Street Criminal Banks could lie and produce fictitious financial statements. When you’re insolvent, just make up the numbers on your financial statements, with the blessing of the government, Federal Reserve and FASB.

It seems the mega-corporations that make up the S&P 500 have taken the lesson to heart. When your profits are falling, just produce alternatives numbers that show them rising. As someone with an accounting degree and a CPA license I can tell you they don’t teach NON-GAAP accounting in college. There are no questions on the CPA exam referencing NON-GAAP accounting. That is because NON-GAAP means nothing. It is nothing but a lie. Both the Wall Street shysters and the captured corporate MSM report this bullshit with a straight face as if it is the truth. It’s not.

Everyone knows the BIG LIE works if you state it loud enough and keep repeating it. There are executive stock options to cash and Wall Street banker bonuses to be paid out. Truth is treason in an empire of lies.