what is the correct EPS?

[mr_byte31]

%% Well with a weak sector mostly;
weak chart, weak price YTD, i would pick weakest eps + find something else. YHOO is not known for accuracy , but i use thier email

the most important thing is to get a precise value to build your decision on it.

I check yahoo finance news : https://finance.yahoo.com/news/wildhorse-development-corporation-announces-second-200500118.html

they state :

Reported a Net Loss available to common stockholders of $22.1 million or $0.22 per share for the second quarter 2018

• Reported Adjusted Net Income available to common stockholders(2) of $39.1 million or $0.39 per share for the second quarter 2018

what exactly adjusted net income mean?
they provided two values (o.39 and 0.22 ) !!!

 

[murray t turtle]

the most important thing is to get a precise value to build your decision on it.

I check yahoo finance news : https://finance.yahoo.com/news/wildhorse-development-corporation-announces-second-200500118.html

they state :

what exactly adjusted net income mean?
they provided two values (o.39 and 0.22 ) !!!

%% With a weak stock , weak sector, weak chart, i would use the lower number + find something better.................................. I would not overweight/precise fundamentals;+i use IBD more than yahoo so i cant comment on yahoo errors

 

[mr_byte31]

I went through the SEC filing again and found this nice statement : https://www.sec.gov/Archives/edgar/...0157/a18-18251_1ex99d1.htm#Exhibit99_1_035737

Reported Adjusted Net Income available to common stockholders(2) of $39.1 million or $0.39 per share for the second quarter 2018

so the -0.22 and 0.39 are both mentioned in the SEC filing
-0.22 was the EPS
and the other one is based on the adjusted income !

but still don't understand , which one should be used and what does this adjusted income means ? !

 

[murray t turtle]

I went through the SEC filing again and found this nice statement : https://www.sec.gov/Archives/edgar/...0157/a18-18251_1ex99d1.htm#Exhibit99_1_035737



so the -0.22 and 0.39 are both mentioned in the SEC filing
-0.22 was the EPS
and the other one is based on the adjusted income !

but still don't understand , which one should be used and what does this adjusted income means ? !

%%
barchart.com has had volume errors; but most all of it is accurate. Earnings chart [barchart.com] on that stock is going down, 6 month price is almost flat, so i used the smaller earnings number.

 

[mr_byte31]

%%
barchart.com has had volume errors; but most all of it is accurate. Earnings chart [barchart.com] on that stock is going down, 6 month price is almost flat, so i used the smaller earnings number.

Do u have valid argument why u use the smallest number?
Or u assume the worest case scenario?

 

[murray t turtle]

Do u have valid argument why u use the smallest number?
Or u assume the worest case scenario?

%%
1]You mean besides the barchart earnings downtrending + [2]price downtrending??And besides 20 year trend study in markets. [3]And you mean also earnings going down on investing.com also[4]And you mean besides weak sector over long periods of time??[5]And No dividends??[6,7] It cant even beat a benchmark like QQQ year to date.Other than all those problems; and small ROE it may do OK?? Thanks for the question; NOT a prediction

 

[newwurldmn]

Ok, I got it it.
Many thanks
but do you know why news and other big websites like Zacks or yahoo use different EPS number ?

First, its how you deal with adjustments. You have GAAP eps and adjusted eps. Technically adjusted EPS is to smooth out the earings and give a better representation of what's going on. However, companies can do whatever they want to calculate this and some services might eliminate some entries.

Second issue is the number of shares. Do you use a fully diluted number of shares, or current shares outstanding, or some other measure.

 

[mr_byte31]

First, its how you deal with adjustments. You have GAAP eps and adjusted eps. Technically adjusted EPS is to smooth out the earings and give a better representation of what's going on. However, companies can do whatever they want to calculate this and some services might eliminate some entries.

Second issue is the number of shares. Do you use a fully diluted number of shares, or current shares outstanding, or some other measure.

I always use diluted since it is smaller . Don't ask me about the reason because I have no reason.

if EPS is not the best measure of the company, then Revenue will be the best thing or shall I consdier the cash ?

 

[newwurldmn]

earnings are the best measure. But not the only measure depending on the company/industry you look at. Fundamental analysis is more art than science with the the canvas being balance sheets and rudiamentary arithmetic.

I always use diluted since it is smaller . Don't ask me about the reason because I have no reason.

if EPS is not the best measure of the company, then Revenue will be the best thing or shall I consdier the cash ?