Barron’s (June 23 Issue)
“Non-GAAP numbers were to be used judiciously to explain extenuating or extraordinary circumstances, like a factory fire or the sale of a division.” Instead, they’ve become endemic. “For fiscal 2024, some 351 companies in the S&P 500 index, or 71%, reported either non-GAAP net income or non-GAAP earnings per share.” Of those, 89% of the adjustments made “their results look better” and the difference can be vast. “Intel had the biggest adjustment last year.” With “a GAAP loss of $19.2 billion” the chipmaker “categorized $18.6 billion as nonrecurring, so it reported a non-GAAP loss of $600 million.” And the sleight of hand can be performed year after year. For example, Oracle “has booked a restructuring charge every year for the past five years.” Especially in tech and healthcare, “non-GAAP numbers are now more accepted than the ‘generally accepted’ ones.”
Tags: Adjustments, Endemic, EPS, Extenuating, Extraordinary circumstances, Factory fire, Healthcare, Intel, Loss, Net income, Non-GAAP, Nonrecurring, Oracle, Restructuring, Results, S&P 500, Tech
The Guardian (March 30)
“The pandemic has changed, but the idea that it is over is false.” Last week, the UK had an estimated 4.26 million cases and hospital “admissions with Covid are only 2% below the first Omicron peak two months ago and still rising.” Nor is Covid endemic. Eventually, it probably will be, but endemic “does not necessarily mean mild,” as TB, Malaria and other endemic diseases illustrate. “Trying to ignore a disease that is still so unpredictable feels a bit like turning your back on a hungry tiger in the undergrowth.”
Tags: Admissions, Cases, Covid, Diseases, Endemic, False, Hospital, Hungry tiger, Malaria, Mild, Omicron, Pandemic, Peak, Rising, TB, UK, Unpredictable
