Why does Value Line sometimes show different share earnings than the company, Standard & Poors, The Wall Street Journal, or my broker?
We each calculate earnings differently. In particular, Value Line excludes what we consider to be unusual or one-time gains or charges in order to show what we consider to be “normal” earnings. Company earnings often contain one-time non-recurring or unusual items, such as expenses related to the early retirement of debt, a change in accounting principles, restructuring charges, or a one-time gain or loss on the sale of assets. In order to make a reasonable comparison of core operating results from one year to the next-or from one company to another-it is necessary to exclude these items from reported earnings. Some items are relatively easy to take out because they are explicitly shown in the company’s income statement and footnotes. Others, however, must be estimated by our analysts. Any unusual adjustments to reported earnings will be disclosed in the footnotes of each Value Line report. 10) I have noticed that the companies are now referring to share earnings as basic or diluted, i
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