Wednesday, February 13, 2008

Reporting season

It's half yearly reporting season, so plenty of articles about focusing on company profits. Note that most of these articles are going to compare actual profits with forecast profits, where the forecasts are based on what analysts anticipate.

Here's an example:
Coca Cola (The Australian)

Note also the use of 'pro forma' profits being used by managers. Pro forma earnings are GAAP earnings (i.e., determined in accordance with the accounting rules) with some adjustments. Usually the adjustments make the pro forma profit higher than the GAAP profit. Cochlear is an example.

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